Business & Finance
Business and Finance
Business and Finance
Wed, February 15, 2012
Tue, February 14, 2012 
February 14, 2012 17:01 ET
CMP Gold Trust Renews Issuer Bid
TORONTO, ONTARIO--(Marketwire - Feb. 14, 2012) - CMP Gold Trust (TSX:CMP.UN), managed by Dundee Securities Ltd. ("Dundee Securities") and sub-advised by Ned Goodman Investment Counsel Limited ("NGIC"), will undertake a normal course issuer bid. The bid of up to 657,190 trust units of the Trust (the "Trust Units") represents approximately 10% of the public float and will be exercised through the facilities of the Toronto Stock Exchange ("TSX"). The fund under its previous normal course issuer bid purchased 306,069 trust units with an average weighted price of $11.25. As of February 6, 2012, the public float of the Trust was 6,571,904 trust units and the issued and outstanding number of trust units of the Trust totaled 8,316,578.
The Trust Units may be purchased for cancellation commencing on February 17, 2012 through to February 16, 2013 through the facilities of the TSX and may be purchased when the net asset value per Trust Unit exceeds its trading price. Pursuant to TSX policies, the Fund will not purchase during any 30 day period more than 166,331 Trust Units representing 2% of the 8,316,578 Trust Units outstanding as at February 6, 2012. A Notice of Intention to Make a Normal Course Issuer Bid has been accepted by the TSX effective as of February 14, 2012.
The purpose of the normal course issuer bid is to provide value to the Trust through purchases made at a discount to the NAV per Trust Unit. As of February 6, 2012, the NAV of the Trust was $17.02 per trust unit and the closing trading price was $11.30 per trust unit (representing a discount of 33.63% when measured against the NAV per trust unit).
Dundee Securities is a full-service Canadian investment dealer with offices in Toronto, Montreal, Vancouver, Calgary and London, England and whose principal businesses include investment banking, mergers and acquisitions, institutional sales and trading, investment, research, private client financial advisory and management of investment products. Dundee Securities focuses on specific sectors, namely, resources, real estate, infrastructure, agriculture and other special situations. Dundee Securities is the asset manager of the CMP™ and Canada Dominion Resources flow-through limited partnerships as well as CMP Gold Trust. Dundee Securities is an indirect wholly-owned subsidiary of Dundee Corporation. Dundee Securities is also acting as broker on behalf of the Trust in connection with the normal course issuer bid.
NGIC is a wholly owned subsidiary of Dundee Corporation and is led by Ned Goodman, CFA, utilizing a team of resource specialists at Dundee Resources Limited, another wholly owned subsidiary of Dundee Corporation. NGIC also acts as the sub-advisor to Dundee Securities for the CMP™ and Canada Dominion Resources family of flow through funds.
