May 28, 2009
Claymore Investments, Inc. ("Claymore"), as manager of Claymore Gold Bullion Trust (the "Fund"), completed an initial public offering of 40,000,000 units ("Units") of the Fund at $10.00 per Unit, for gross proceeds of $400,000,000. This is the largest IPO in Canada to date in 2009 and the largest structured product IPO in Canada in the last two years.
Each Unit is comprised of one transferable and redeemable trust unit (a "Fund Unit") and one warrant (a "Warrant"). Each Warrant is exercisable to acquire one additional Fund Unit for $10.00 at any time before 4:00 p.m. (Toronto Time) on November 28, 2009. The Fund also has granted the agents an over-allotment option which is exercisable in whole or in part to purchase up to 6,000,0000 additional Units at any time during the next 30 days for additional gross proceeds of $60,000,000.
The Fund Units and Warrants commenced trading on May 28, 2009 on the Toronto Stock Exchange under the symbols CGL.UN and CGL.WT, respectively.
The Fund's investment objective is to replicate the performance of the price of gold bullion, less the Fund's expenses and fees. This objective will be accomplished by the Fund investing the net proceeds of the Offering in holdings of physical gold bullion. Given that gold bullion is priced in US dollars, the Fund will hedge substantially all of the Fund's US dollar currency value back to the Canadian dollar.
The Offering was made on a best efforts basis in each of the provinces and territories of Canada through a syndicate of investment dealers led by GMP Securities L.P. and TD Securities Inc., and including Genuity Capital Markets, Canaccord Capital Corporation., Dundee Securities Corporation, Richardson Partners Financial Limited, Scotia Capital Inc., Blackmont Capital Inc., Desjardins Securities Inc., Haywood Securities Inc., Burgeonvest Securities Limited, FirstEnergy Capital Corp., HSBC Securities (Canada) Inc., Research Capital Corporation, Rothenberg Capital Management Inc. and Wellington West Capital Markets Inc.
Wildeboer Dellelce LLP acted for Claymore and the Fund with a team including Perry Dellelce, Peter Simeon, Al Wiens, Geoff Cher, Joanne Sanci, and Patrick Magee (corporate/securities) and Kevin Fritz, Andrea Shreeram and Nicholas Dobbek (tax).
