Central Fund of Canada Shareholders Overwhelmingly Approve Arrangement With Sprott
01 December 2017 - 10:27AM
Central Fund of Canada Limited (NYSE American:CEF) (TSX:CEF.A)
(TSX:CEF.U) ("CFCL" or “Central Fund”) and Sprott Inc. (TSX:SII)
(“Sprott”), are pleased to announce that CFCL’s Class A and common
shareholders have overwhelmingly approved the plan of arrangement
involving Sprott and the new Sprott-managed Sprott Physical Gold
and Silver Trust (the “Arrangement”) at CFCL’s special meeting of
shareholders held earlier today. Of the total Class A shares
voted, approximately 90.24% voted in favor of the Arrangement,
including 90.23% of minority shareholders under Multilateral
Instrument 61-101. Of the total common shares voted, 100% voted in
favor of the Arrangement.
Pursuant to the Arrangement, Sprott will acquire
the common shares of CFCL and the right to administer and manage
CFCL’s assets, and move CFCL’s class A shareholders to the Sprott
Physical Gold and Silver Trust.
“We are happy and appreciative that the Central
Fund shareholders supported this significant transaction,” said
Barry R. Cooper, chairman of the Central Fund special offer
committee.
“We appreciate that CFCL shareholders recognized
the benefits of this transaction and the tremendous opportunity to
unlock value,” said John Ciampaglia, CEO of Sprott Asset
Management. “We look forward to welcoming all CFCL
shareholders to our client base and working to provide them with
outstanding client service.”
The Arrangement is expected to close in January
2018 subject to the satisfaction or waiver of the outstanding
customary conditions to closing, including stock exchange and
regulatory approvals.
About Central Fund
Central Fund of Canada Limited is a specialized
investment holding company, established in 1961, which invests
primarily in long-term holdings of unencumbered, allocated and
physically segregated gold and silver bullion and does not
speculate in gold and silver prices. At November 29, 2017, the
Class A shares of Central Fund were backed 99.7% by gold and silver
bullion. The Class A shares may be purchased or sold with ease on
either the NYSE American (Symbol: CEF) or the Toronto Stock
Exchange (Symbols: CEF.A in Canadian dollars and CEF.U in U.S.
dollars).
About Sprott
Sprott is an alternative asset manager and a
global leader in precious metal and real asset investments. Through
its subsidiaries in Canada, the US and Asia, the
Corporation is dedicated to providing investors with best-in-class
investment strategies that include Exchange Listed Products,
Alternative Asset Management and Private Resource Investments. The
Corporation also operates Merchant Banking and Brokerage businesses
in both Canada and the US. Sprott is based
in Toronto with offices in New
York, Carlsbad and Vancouver and its common
shares are listed on the Toronto Stock Exchange under the
symbol (TSX:SII). For more information, please visit
www.sprott.com.
Forward Looking Statements
Certain statements and other information included in this press
release constitute “forward-looking information” or
“forward-looking statements” (collectively, “forward-looking
information”) within the meaning of applicable Canadian and United
States securities legislation. Forward-looking information includes
information that relates to, among other things, the completion,
and timing of completion, of the Arrangement, the value of the
units of Sprott Physical Gold and Silver Trust received by CFCL
Class A shareholders under the Arrangement, and Sprott's
objectives, strategies, intentions, expectations and guidance and
future financial and operating performance including with respect
to Sprott Physical Gold and Silver Trust. Forward-looking
information is not, and cannot be, a guarantee of future results or
events. Forward-looking information is based on, among other
things, opinions, assumptions, estimates and analyses that, while
considered reasonable by us at the date the forward-looking
information is provided, are inherently subject to significant
risks, uncertainties, contingencies and other factors that may
cause actual results and events to be materially different from
those expressed or implied by the forward-looking information. The
material factors or assumptions identified and applied in drawing
conclusions or making forecasts or projections set out in the
forward-looking information include, but are not limited to, the
execution of business and growth strategies, including the success
of investments and initiatives; no significant and continuing
adverse changes in general economic conditions or conditions in the
financial markets; the acquisition of substantially all of the
assets and liabilities of CFCL; that all required court, regulatory
and stock exchange approvals for the Arrangement will be obtained
and all other conditions to completion of the Arrangement will be
satisfied or waived. The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to general global economic, market
and business conditions; and court, regulatory and stock exchange
requirements. Should one or more risk, uncertainty, contingency or
other factor materialize or should any factor or assumption prove
incorrect, actual results could vary materially from those
expressed or implied in the forward-looking information.
Accordingly, the reader should not place undue reliance on
forward-looking information. Neither Sprott nor CFCL assumes any
obligation to update or revise any forward-looking information
after the date of this news release or to explain any material
difference between subsequent actual events and any forward-looking
information, except as required by applicable law
Contact:
For CFCL:
Telephone: (905) 648-7878 Email:
info@centralfund.com
For Sprott:
Glen WilliamsManaging DirectorSprott Direct:
416-943-4394gwilliams@sprott.com
or
Dan Gagnier / Patrick ReynoldsGagnier
Communications646-569-5897sprott@gagnierfc.com
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