July 15, 2009
Claymore Investments, Inc. ("Claymore"), as manager of Claymore Silver Bullion Trust (the "Fund"), completed an initial public offering of 3,600,000 units ("Units") of the Fund at $10.00 per Unit, for gross proceeds of $36,000,000.
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 January 15, 2010. The Fund also has granted the agents an over-allotment option which is exercisable in whole or in part to purchase up to 540,000 additional Fund Units at any time during the next 30 days for additional gross proceeds of up to $5,400,000.
The Fund Units and Warrants commenced trading on July 15, 2009 on the Toronto Stock Exchange under the symbols SVR.UN and SVR.WT, respectively.
The Fund's investment objective is to replicate the performance of the price of silver 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 and unencumbered silver bullion. Given that silver 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, providing exposure to silver while reducing the currency risk for Canadian investors.
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., Raymond James Ltd., National Bank Financial Inc., BMO Nesbitt Burns Inc., Haywood Securities Inc., 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, Sanjeev Patel, Joanne Sanci and Mack Hosseinian (corporate/securities) and Kevin Fritz and Andrea Shreeram (tax).