Central GoldTrust announce that CIBC World Markets Inc. has exercised its right to purchase an additional 148,000 Units at a price of US$33.83 per Unit, for additional gross proceeds of U.S.$5,006,840 to Central GoldTrust. CIBC World Markets Inc. agreed earlier this morning to underwrite 975,500 Units for gross proceeds of U.S.$33,001,165.
The underwritten price of U.S.$33.83 per Unit was non-dilutive and accretive for the existing Unitholders of Central GoldTrust. The additional net proceeds have been committed to purchase gold bullion for settlement at closing, in keeping with the asset allocation provisions outlined in Central GoldTrust’s Declaration of Trust and the related policies established by its Board of Trustees. The additional capital raised by this underwriting is expected to reduce the annual expense ratio in favour of the Unitholders of Central GoldTrust.
The Units of Central GoldTrust are qualified investments for RRSPs, DPSPs, RRIFs, RESPs and RDSPs. The Units are also eligible investments in the United States for various regulated investors and accounts.
Central GoldTrust has filed a base shelf prospectus and registration statement with the Canadian securities regulatory authorities and the United States Securities and Exchange Commission (”SEC”) which will serve as the base for the offering to which this communication relates. Before you invest, you should read the base shelf prospectus and any other documents Central GoldTrust has filed with the securities commissions in each of the provinces and territories of Canada, except Quebec, and the SEC for more complete information about Central GoldTrust and this offering. You may obtain a copy of the base shelf prospectus filed in the United States and any prospectus supplement from CIBC World Markets Corp. 425 Lexington Avenue, 5th Floor, New York, New York, 10017, by fax at 212-667-6303 or by e-mail at email@example.com. You may obtain a copy of the base shelf prospectus in Canada from CIBC World Markets Inc., fax 416-594-7242 or request a copy by telephone at 416-594-7270.