Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > PM Bug

Reply
 
LinkBack Thread Tools
Old 11-29-2017, 03:22 PM   #1
Fly on the wall
 
MarcLacroix's Avatar
 
Join Date: Apr 2015
Location: Planet Earth
Posts: 80
Liked: 27 times
CEF selling out to Sprott

Hi;

I own shares of 'CEF' and this deal worries me.
Are there any other 'CEF' shareholders here or are you all strictly coins?

Marc
MarcLacroix is offline   Reply With Quote
Old 11-30-2017, 06:45 AM   #2
Fly on the wall
 
Join Date: Sep 2015
Location: Massachusetts
Posts: 63
Liked: 16 times
Not being all that conversant with the subject, may I ask what 'CEF' is? To me, with my aviation background, 'CEF' is the International Air Transportation Association identifier for the Westover Metropolitan Airport in Chicopee MA. Yours must mean something else.

But as far as your question, so far I deal only in physical PMs, mainly coins. That could change with proper motivation.
FPrice is offline   Reply With Quote
Old 11-30-2017, 07:28 AM   #3
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 7,014
Liked: 2443 times
Quote :
Transaction Highlights:
  • Sprott Asset Management ("SAM") to acquire common shares of Central Fund of Canada Limited ("CFCL") and right to administer and manage CFCL's assets for C$120 million in cash and stock
  • Upon completion of the transaction, all CFCL Class A shares to be exchanged for units in a new Sprott Physical Gold and Silver Trust
  • Over US$300 million in value expected to be realized for CFCL class A shareholders, relative to 9% pre-announcement net asset value ("NAV") discount1
  • Adds C$4.3 billion in Assets Under Management ("AUM"), and solidifies Sprott's position as a global leader in precious metals investments
  • Highly synergistic with Sprott's current physical bullion product suite
  • Expands Sprott's client base by approximately 90,000 investors
...The New Sprott Trust will be substantially similar to the existing SAM-managed physical bullion trusts, Sprott Physical Gold Trust (NYSE ARCA: PHYS) (TSX:PHYS) and Sprott Physical Silver Trust (NYSE ARCA: PSLV) (TSX:PSLV), including SAM's best-in-class physical bullion redemption feature. The New Sprott Trust's management fee will be 40 bps of NAV, which is comparable with Sprott Physical Gold Trust and Sprott Physical Silver Trust.

Transaction Summary

The transaction will be implemented pursuant to a plan of arrangement under the Business Corporations Act (Alberta) and is expected to close in the first quarter of 2018, subject to the satisfaction of customary conditions, including receipt of regulatory, securities commission and stock exchange approvals ...
https://finance.yahoo.com/news/sprot...110000359.html

I don't own any CEF, but what are your concerns Marc?
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 11-30-2017, 04:13 PM   #4
Fly on the wall
 
MarcLacroix's Avatar
 
Join Date: Apr 2015
Location: Planet Earth
Posts: 80
Liked: 27 times
Fair question.
I have been trying to obtain details for this transaction.
One hundred twenty million dollars seems awfully cheap for a fund which owns a few billion dollars worth of Gold/Silver bullion. Is this some sort of scare tactic to get people to sell their shares?
How much is Sprott paying for CEF's bullion?

Dammit, I was doing just fine up until this bugger Sprott showed up.

Marc
MarcLacroix is offline   Reply With Quote
Old 12-01-2017, 05:05 AM   #5
Yellow Jacket
 
rblong2us's Avatar
 
Join Date: Nov 2011
Location: off world
Posts: 1,965
Liked: 870 times
Whats the issue with Sprott ?

Yeah he 'talks his book' and gold /silver is always about to go stratosph - eric

but at heart he is a p.m. supporter who has done very well out of his efforts and possibly our gullibility.

If he has it right then he will do well out of his purchase and possibly so will any who have already purchased shares in CEF / CFCL, unless of course the CFCL shares were pumped up and now theres a day of reckoning ?
__________________
if it cant be done with a digger .... it cant be done
rblong2us is offline   Reply With Quote
Old 12-01-2017, 07:34 AM   #6
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 7,014
Liked: 2443 times
The knock on Sprott AFAIK is that he profits off of the PM markets - off of his investors (for example, when he expanded shares in the closed PHYS fund). But I've never heard one bad thing about anyone getting swindled out of their physical bullion. Sprott has a reputation that's been earned over a long time. I suspect CEF/CFCL will plug along.
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 12-24-2017, 05:36 PM   #7
Fly on the wall
 
MarcLacroix's Avatar
 
Join Date: Apr 2015
Location: Planet Earth
Posts: 80
Liked: 27 times
Because of the lack of clear details this deal fell into the 'I do not understand' category for me so I unloaded my shares at thirteen and change on December 1st.
I'll take a look at Sprott's new fund when it starts trading...

Marc
MarcLacroix is offline   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Selling old negatives Izzabella Silver Bug 3 07-27-2017 01:23 PM
Selling Coins FPrice Gold Bug 2 03-08-2016 06:16 AM
Sprott shelf filing for PSLV to buy more silver PMBug Silver Bug 59 04-18-2013 10:48 AM
Sprott presentation at Manhattan Club in October PMBug PM Bug 0 11-12-2012 07:19 AM
Sprott put a bid in.. DSAbug Silver Bug 25 08-27-2012 07:00 PM


All times are GMT -5. The time now is 12:00 AM.


Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of PMBug.com copyright © 2011 - 2019 Measuring Up. All Rights Reserved.