RE:RE:RE:1000 @ 25 centsSpeaking of Sprott (and this is corporate Sprott, I gather), this just popped up in a SBT.U news release:
2015-08-07 14:31 ET - News Release
Mr. Bruce Heagle reports
Mr. Schwandt has agreed to assume these roles at a critical time when SBT is facing a hostile take-over bid by Sprott Asset Management LP and Sprott Physical Silver Trust (collectively, "Sprott") for all outstanding Units of SBT (the "Sprott Offer"). Mr. Schwandt stated, "I am grateful for the opportunity to take on additional responsibilities in the governance of SBT at this critical time. Together with my fellow Trustees I am strongly of the view that SBT's superior fee structure that is approximately 40% lower than Sprott, superior bullion security, vastly superior governance and Unitholder rights, more favourable tax structure and superior leverage to rising bullion prices clearly place Unitholders in a better position than the Sprott Offer can, and urge our SBT Unitholders to retain their Units."
Mr. Schwandt replaces Mr. Ian McAvity who stepped down as Lead Trustee of SBT and Chair of the Corporate Governance and Nominating Committee and as a member of the Special Committee of the Board of Trustees of SBT. Mr. McAvity will continue to serve as a member of the Board of Trustees of SBT.
Mr. McAvity stated, "It is unfortunate that Sprott has resorted to making disparaging attacks against me personally. I am stepping aside from these roles so that SBT Unitholders can focus on the important decision they face regarding the Sprott Offer and so that these desperate personal attacks by Sprott do not become a sideshow and distraction to SBT and its Unitholders. I look forward to continuing to support SBT and its Unitholders in my role as a Trustee of SBT."
Bruce Heagle, Chair of the Special Committee of Independent Trustees of SBT, added: "Sprott's hypocritical attacks on Mr. McAvity are clearly an attempt to distract Unitholders from focusing on the fact that the Sprott Offer does not provide meaningful value to SBT Unitholders. We find it very odd that Sprott's self-serving attacks on Mr. McAvity come from a group that has no corporate governance structure, no Board of Trustees and no ability for their unitholders to oversee Sprott as manager."
Mr. Heagle continued: "While Mr. McAvity has served the Board and Unitholders well for the past 6 years, I applaud his decision to step back from his committee roles and look forward to his continuing service to Unitholders in his role as a Trustee of SBT. I encourage all SBT Unitholders to review the Trustees' Circular in detail prior to making any decisions regarding the Sprott Offer. We trust that our Unitholders will see the Sprott Offer for what it really is: a transparent and opportunistic attempt by Sprott to eliminate a competitor and generate additional management fees. The Sprott Offer provides no real benefit to Unitholders, but would result in higher fees, lower bullion security, reduced governance rights and increased tax risk. As always, we thank SBT Unitholders for their support and we look forward to continuing dialogue with our Unitholders."
2015 Canjex Publishing Ltd. All rights reserved.
2015-08-05 17:21 ET - News Release
An anonymous director reports
SILVER BULLION TRUST RESPONDS TO MISLEADING, DISPARAGING AND INACCURATE STATEMENTS BY SPROTT
Silver Bullion Trust (SBT) has responded to the press release issued by Sprott Asset Management LP and Sprott Physical Silver Trust on Aug. 3, 2015, commenting on the July 31, 2015, decision of the Ontario Superior Court of Justice (Commercial List). Unfortunately, in its press release, Sprott made a number of misleading, disparaging and inaccurate statements in yet another attempt to deflect unitholders' attention away from the deficiencies in Sprott's self-serving offer. The board of SBT would like to point out certain glaring and significant flaws in Sprott's statements, which appear to purposely omit important facts.
Sprott fails to mention that the court ruled the Sprott offer is deficient and cannot proceed without amendments
In its press release, Sprott indicates that the court dismissed the legal proceedings commenced by SBT and Central GoldTrust against Sprott, and affirmed the validity of Sprott's May 27, 2015, hostile takeover bid for all outstanding units of SBT. Sprott fails to mention that the court agreed with SBT that the Sprott offer deprives unitholders of their statutory takeover bid withdrawal rights. Sprott also neglects to mention that the court found that the powers of attorney that tendering unitholders are required to grant to Sprott pursuant to the letters of transmittal under the Sprott offer are so broad that they go beyond approving the merger transaction and the redemption of the units, and in doing so contravene the Securities Act (Ontario). The court ordered that the Sprott offer cannot proceed unless Sprott corrects these defects. On Aug. 4, 2015, Sprott filed a notice of extension and variation extending the Sprott offer until Sept. 18, 2015, and purported to deal with the deficiencies identified by the court. SBT and its advisers are reviewing the notice of extension and variation to determine whether Sprott has properly addressed these deficiencies and SBT's options moving forward.
2015 Canjex Publishing Ltd. All rights reserved.