- Polar will not utilize proposed redemption feature in 2015
- Redemption feature improves probability that CGT will trade at
a premium
- Commitment made to unitholders in light of management scare
tactics
TORONTO, April 21, 2015 /CNW/ - Polar Securities Inc.
("Polar") a 5.7% unitholder of Central GoldTrust ("CGT" or the
"Trust") (TSX:GTU-U; NYSE MKT:GTU) today committed that if Polar's
proposed unit redemption feature is adopted by CGT, Polar will not
redeem its units in 2015.
"We hope this commitment to our fellow unitholders to forgo
redemptions from the Trust for a period of at least eight months,
demonstrates that Polar is looking out for the best interests of
all unitholders. Our goal from the outset was to address the
significant trading discount to net asset value, suffered by all
unitholders. We believe that our proposal also improves the
probability that CGT will trade at a premium, and we'd like to give
that some time to play out," said Paul
Sabourin, CIO of Polar.
"Management has repeatedly attempted to scare and mislead
unitholders by insisting that Polar will immediately redeem its
units of the Trust. Our commitment to forgo redemptions in 2015,
while allowing other unitholders to redeem, directly refutes their
central assertion and is consistent with what we offered management
back in February," continued Mr. Sabourin.
ABOUT THE POLAR PROPOSAL AND OUR NOMINEES
Polar is proposing to amend CGT's existing redemption features
with proven, industry standard redemption features to benefit ALL
unitholders, regardless of the size of their holdings. Based on
March 31, 2015 closing prices,
unitholders should expect to gain at least USD$3,102 of additional value for each 1,000
Units held.
Polar has nominated 5 independent trustees who bring decades of
experience from Canada's largest
financial institutions and extensive public board experience. Their
combined expertise, both managing and advising public and private
companies, will enable them to unlock value at CGT for ALL
unitholders.
BREAK OUT OF THE GOLDTRUST VALUE TRAP – VOTE BLUE FOR
CHANGE
Vote the BLUE proxy today in favour of Polar's redemption
proposal and for Polar's five highly qualified and independent
nominees.
In order to ensure that your vote is counted, your vote must be
submitted before 12:00 p.m. (noon)
(Toronto time) on Tuesday, April 28, 2015.
For additional information please visit Polar's website
www.UnitholdersForCGT.com.
If you have any questions or need assistance in voting your
BLUE proxy, please contact Shorecrest Group Ltd. at
1-888-637-5789 (toll free within North
America) or 647-931-7454 (collect calls accepted), or by
email at contact@shorecrestgroup.com.
POLAR SECURITIES INC.
Established in 1991, Polar, based in Toronto, Canada, is registered as an
Investment Dealer, Investment Fund Manager and Futures Commission
Merchant with the Ontario Securities Commission and is a member of
the Investment Industry Regulatory Organization of Canada. Polar acts as the investment manager
for certain investment funds and manages over CAD$2 billion of client funds. Polar's investment
philosophy focuses on capital preservation and low volatility.
During its tenure, Polar has invested in more than 10 Canadian
precious metals funds and more than 75 Canadian closed-end products
and has extensive expertise in structuring, managing and investing
in complex investment products.
SOURCE Polar Securities Inc.