Name - Precious Metals and Mining Trust
Website - http://www.sentryselect.com
Cusip Number -
Expiry Date -
Precious Metals and Mining rights offering
2008-02-22 17:53 MT - Rights Offering
TSX bulletin 2008-0218
Rights symbol: MMP.RT
Cusip No.: 740173 11 7
Unitholder entitlement: One right for each unit held on the record date
Terms of the rights: Two rights and $10.28 per unit
Expiration time: 4 p.m. (Toronto time), March 24, 2008
Ex rights date: Feb. 26, 2008
Record date: Feb. 28, 2008
Designated market-maker: Jitney Trade Inc.
Additional information on the rights offering may be found in the trust's short form prospectus dated Feb. 15, 2008, which is available at www.sedar.com. Holders of units of Precious Metals and Mining Trust of record as at the close on Thursday, Feb. 28, 2008, will be granted transferable rights to subscribe for and purchase additional units of the trust. Each holder of units at the close on the record date is entitled to receive one right for each unit held. Two rights entitle the holder thereof to purchase one unit at a price of $10.28 per unit on or before 4 p.m. (Toronto time) on March 24, 2008.
The units of the trust will commence trading on an ex rights basis at the open on Tuesday, Feb. 26, 2008, at which time the rights will be posted for trading on a when-issued basis. Unitholders will not receive physical certificates evidencing their ownership of rights. A certificate representing the rights will be issued in registered form to CDS Clearing and Depository Services Inc. The trust expects that each beneficial unitholder will receive a confirmation of the number of rights issued to it from its CDS participant in accordance with the practices and procedures of that CDS participant. CDS will be responsible for establishing and maintaining book-entry accounts for its participants holding rights.
Fractional units will not be issued upon the exercise of rights. Each holder holding a number of rights not evenly divisible by two will be entitled to round up their subscription to the next highest whole number of units provided that the total gross proceeds realized pursuant to this offering do not exceed $58,852,101. A subscriber may subscribe for the resulting whole number of units or any lesser whole number of units by instructing the CDS participant holding the subscriber's rights to exercise all or a specified number of such rights and forwarding the subscription price for each unit subscribed for to the CDS participant which holds the subscriber's rights. Unitholders must provide the CDS participant holding their rights with instructions sufficiently in advance of the expiry time to permit the proper exercise of their rights. CDS participants will have an earlier deadline for receipt of instructions.
Each holder of rights who has initially subscribed for all of the units to which such holder is entitled pursuant to the basic subscription privilege may subscribe for additional units, if available, at a price equal to the subscription price for each additional unit. The number of units available for all additional subscriptions (the additional units) will be the difference, if any, between the total number of units issuable upon exercise of rights, including any units issued pursuant to the step-up privilege, and the total number of units subscribed and paid for pursuant to the basic subscription privilege at the expiry date. Subscriptions for additional units will be received subject to allotment only. If any unitholder has subscribed for fewer additional units than such holder's pro rata allotment of additional units, the excess additional units will be allotted in a similar manner among the holders who were allotted fewer additional units than they subscribed for. To apply for additional units under the additional subscription privilege, any beneficial holder of rights must forward their request to a CDS participant prior to the expiry time. Payment for additional units must accompany the request when it is delivered to the CDS participant. The subscriber must deliver its payment and instructions sufficiently in advance of the expiry time to allow the CDS participant to properly exercise rights on its behalf.
This offering is made in Canada and not in the United States or any territory or possession thereof. This offering is not, and under no circumstances is to be construed as, an offering of any units for sale in the U.S. or any territory or possession thereof or an offering to or for the account or benefit of any U.S. person or a solicitation therein of an offer to buy any securities. Accordingly, neither a subscription under the basic subscription privilege nor under the additional subscription privilege will be accepted from any person, or his, her or its agent, who appears to be, or who the trust has reason to believe is, not resident in Canada. The CDS participant will, prior to the expiry date, attempt to sell the rights allocable to such unitholders at a price or prices it determines in its discretion. A unitholder's pro rata share of any proceeds received with respect to such rights will be delivered, as soon as practisable to such unitholders at their last recorded address by the mailing of a cheque payable in Canadian funds. It is anticipated that the prospectus will be mailed to unitholders on or about Feb. 29, 2008.
The prospectus discloses that the trust has engaged CIBC World Markets Inc. to form a soliciting dealer group that includes members of the Investment Dealers Association of Canada and recognized stock exchanges in Canada for the purpose of soliciting subscriptions for the units offered pursuant to the prospectus. In consideration for such services, the trust has agreed to pay the dealer manager a fee of $100,000. The trust has also agreed to pay a subscription fee of 15 cents per unit.
Trading and settlement rules
Trade dates Settlement dates March 18, 2008 March 20, 2008 March 19, 2008, and March 20, 2008 Cash next day March 24, 2008 Cash same day
All trades on March 18, 2008, will be for special settlement on March 20, 2008. These trades will appear on the CDS settlement report and will be recorded with a settlement date of March 20, 2008.
All trades on March 19, 2008, and March 20, 2008, will trade for cash settlement the following business day. Trades on March 24, 2008, from the open to noon will be for same-day cash settlement.
Selling participating organizations must have the rights that are being sold in their possession or owed to them through clearing prior to such sale.
Should fail positions exist on the expiration date, purchasing participating organizations have the option of paying for the rights purchased and demanding delivery of the securities into which the rights are exercisable. Reference should be made to Rule 5-303.
Such demand shall be made before 4 p.m. on Nov. 22, 2007.
Investors should contact their brokers for information or advice on their investment.
Rights give existing shareholders a chance to proportionately buy shares in the new issue the company is putting out to raise more funds. The certificate showing this privilege is called a right. It gives the stockholders the first opportunity, to buy the new securities.
An offer made by a company to its shareholders to enable them to buy new shares in the company at a discount to the market price.