|By Marketwired .||
|June 24, 2014 02:43 PM EDT||
MARKHAM, ON -- (Marketwired) -- 06/24/14 -- Bullion Management Services Inc. (the "Manager") announced today a proposal to terminate the BMG Gold Advantage Return BullionFund (the "Fund") by way of a transfer of assets (the "Merger") to the BMG Gold BullionFund (the "Continuing Fund" and together with the Fund, the "Funds") on or around August 26, 2014 (the "Effective Date"). The Merger is subject to the approval of unitholders of the Fund (the "Unitholders") at the Meeting (defined below) as well as approval of the applicable regulatory authorities. If approved and implemented, the Merger will be effected on a taxable basis.
The independent review committee of the Funds has provided its decision that, in its opinion, the Merger provides a fair and reasonable result for each of the Funds.
If necessary approvals are not obtained, the Manager intends to terminate the Fund on or around the Effective Date.
The Fund and the Continuing Fund have the same manager, substantially similar investment objectives and strategies, fee structures, and valuation procedures. The Manager expects that the implementation of the Merger will form a larger, open-ended mutual fund that is expected to result in potentially lower management expense ratio, economies of scale and cost synergies for the unitholders of the Funds.
The Manager intends to seek approval of Unitholders for the Merger at a special meeting of Unitholders duly called and held to consider the Merger and related matters, including changes to the declaration of trust governing the Funds, on or around August 22, 2014 (the "Meeting").
Unitholders should note the following in relation to the Merger:
- The investment objectives, valuation procedures and fee structure of the Funds are substantially similar;
- The Merger will be effected on a taxable basis; and
- Unitholders of the Fund may choose, prior to the Merger, to surrender their units for redemption up to the close of business on August 25, 2014, the business day immediately before the Effective Date.
Unitholders of the Fund on the proposed record date, July 22, 2014, will be entitled to receive notice of and vote at the Meeting. They will also receive the management information circular (the "Circular") which will include the details about the Merger, including the differences between the Fund and the Continuing Fund. The Circular is expected to be mailed on or around July 29, 2014. The Circular will also be available on www.sedar.com and posted on the Manager's website. Unitholders are encouraged to read the Circular in its entirety and consult with their investment advisors regarding the Merger.
Subject to receipt of applicable approvals, the Merger is expected to be implemented on or around the Effective Date.
Unitholders of the Fund will also be sent a written notice 60 days before the Effective Date notifying them that the Fund will terminate on or around the Effective Date if the Merger is approved and implemented, and also that if the Merger is not approved, the Manager still intends to terminate the Fund on or around the Effective Date.
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Funds. The forward-looking statements are not historical facts but reflect the Funds' and the Manager's, current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including, but not limited to, market factors. Although the Funds and the Manager believe that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Funds and the Manager undertake no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
For more information on the Merger and the Funds managed by Bullion Management Services Inc., please visit our website at www.bmgbullion.com or contact: