TORONTO, June 17, 2015 /CNW/ - Polar Securities Inc. ("Polar") announced that it has deposited 1,095,231 units of Central GoldTrust ("CGT")(TSX:GTU-U; NYSE MKT:GTU) and 554,500 units of Silver Bullion Trust ("SBT")(TSX:SBT-U) to the exchange offer announced by Sprott Asset Management LP ("Sprott") on April 23, 2015. The units deposited represent 5.7% and 10.1% of the issued and outstanding units of CGT and SBT, respectively.
"We previously announced our support for the Sprott exchange offers and, on reviewing management's response to the offers, we have no reservations tendering into the Sprott bids," said Paul Sabourin, Chairman and CIO of Polar.
"Despite spending a considerable amount of unitholder resources, management still has no solution to the problems highlighted by Polar in January and that management is only now willing to acknowledge. The market has consistently valued the Sprott products over CGT and SBT, making the opportunity to exchange for the Sprott products a compelling value proposition for all unitholders," continued Mr. Sabourin.
Polar also acknowledged its support of the recent Sprott initiative to affect change at Central Fund of Canada ("CEF")(TSX:CEF/A; NYSE MKT:CEF), the third member of the Central family of funds managed by the Spicer family. Polar is a long-standing and long-suffering holder of CEF and agrees with many other shareholders that the time for change at CEF, as well as GTU and SBT, is long overdue.
ABOUT POLAR SECURITIES INC.
Established in 1991, Polar 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 other managed accounts 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.
For further information: Greg Lemaich, Polar Securities Inc., (416) 369-8087, [email protected]