TORONTO, ONTARIO--(Marketwire - Jan. 28, 2010) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Brompton Funds Management Limited (the "Manager", as manager of Precious Metals Bullion Trust (TSX:PBU.UN)(TSX:PBU.WT), (the "Fund"), hereby provides notice that all warrants (the "Warrants") for purchase of units of the Fund (the "Units") must be exercised or sold prior to 5:00 pm on Monday February 1, 2010. Warrants not exercised by 5:00 pm on Monday February 1, 2010 will expire worthless. Investment dealers may impose earlier deadlines for warrant exercise.
Each Warrant entitles the holder to acquire one Unit of the Fund upon payment of the $12.00 subscription price. The Warrants present holders with the opportunity to acquire a Unit of the Fund at a price less than the most recently calculated NAV per Unit of $12.92 as of January 21, 2010. If all outstanding Warrants were exercised as of that date, the diluted NAV per Unit would have been $12.53.
Warrants and Units of the Fund are listed on the TSX under ticker symbols PBU.WT and PBU.UN respectively. The closing market price of the Units on the TSX on January 27, 2010 was $12.00. Warrants will cease trading on the TSX at noon on Monday February 1, 2010. Holders of Warrants who wish to exercise their Units should instruct their investment dealer.
Holders of Warrants who subscribe for Units of the Fund may also participate in the Additional Subscription Privilege. Warrant holders who wish to exercise their Warrants and submit an Additional Subscription request should notify their investment dealer. The Additional Subscription must be submitted to the Warrant Agent, Equity Transfer & Trust Company, by 5:00 pm on February 1, 2010.
The net proceeds of the Warrant offering will be used to purchase approximately equal dollar amounts of physical gold, silver and platinum bullion in accordance with the investment objective and restrictions of the Fund. All of the Fund's physical bullion is stored on an allocated, segregated basis.
Precious metals have historically been regarded as a store of value, a hedge against inflation and a safe harbour in times of financial and geopolitical distress. Precious metals have low or negative correlations with bonds and equities, providing portfolio diversification benefits. Unitholders enjoy many of the benefits of a direct investment in precious metals such as avoiding counterparty or company specific risks typically associated with derivative-based exposure to commodities and equity securities. The US dollar value of the portfolio is hedged back to the Canadian dollar.
For further information, please contact your financial advisor, call our investor relations line at 416-642-9051, (toll-free at 1-866-642-6001) or visit our website at www.bromptongroup.com.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Units or the Warrants nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.
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