February 16, 2010
Claymore Investments, Inc. (“Claymore”), as manager of Claymore Gold Bullion Trust (the “Fund”), announced that the Fund has met the requirements of its ETF conversion feature and will now be traded as an exchange-traded fund (“ETF”) effective February 16, 2010, and the name of the Fund will be changed to the Claymore Gold Bullion ETF. The hedged common units of the Fund will now trade on the Toronto Stock Exchange (“TSX”) under the ticker CGL. The Fund has also qualified for issuance a new class of non-hedged common units of the Fund to be launched at a future date.
The Fund was previously a closed-end fund, the units (the “Fund Units”) and warrants of which were offered to the public under a prospectus dated May 19, 2009 and issued at the closing of its initial public offering. As set out in the prospectus, the Fund was to automatically convert into an ETF if, commencing November 28, 2009, the daily weighted average trading price of the Fund Units was greater than a discount of 2% of the net asset value per Fund Unit for that day, for a period of ten consecutive trading days. The conversion test has been met and the Fund has now converted to an ETF.
By converting to an ETF, the Fund is expected to provide unitholders with several important benefits including more efficient trading as the market price of the Fund Units on the TSX should be closer to its intrinsic net asset value, as well as greater market liquidity. The conversion to an ETF will not change the investment objective or investment restrictions of the Fund.
Wildeboer Dellelce LLP acted for Claymore and the Fund with a team including Perry Dellelce, Peter Simeon, Al Wiens, Geoff Cher and Darryl Holyday (corporate/securities) and Kevin Fritz and Andrea Shreeram (tax).