...The New Sprott Trust will be substantially similar to the existing SAM-managed physical bullion trusts, Sprott Physical Gold Trust (NYSE ARCA: PHYS) (TSXHYS) and Sprott Physical Silver Trust (NYSE ARCA: PSLV) (TSXSLV), 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.
- 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 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 ...