Claymore Silver Bullion Trust has filed a preliminary prospectus in connection with a domestic initial public offering of units, Claymore Investments, Inc. said Thursday.

The fund proposes to issue units comprised of one transferable trust unit and one warrant, which is exercisable for $10 at any time before 16:00 ET on the date that is 6 months following the closing of the offering. The offering price of the units is $10 per unit.

The fund’s investment objective is to replicate the performance of the price of silver bullion, less the fund’s expenses and fees. The fund proposes to invest the net proceeds of the offering in holdings of unencumbered silver bullion.

“This strategy will provide investors with the ability to invest in silver bullion in a convenient, tradable and secure manner without the associated inconvenience and high transaction, handling, storage, insurance and other costs typical of direct silver bullion investment,” Claymore Investments says.

Given that silver bullion is priced in U.S. dollars, the fund will hedge substantially all of the fund’s U.S.dollar currency value back to the Canadian dollar, providing exposure to silver while reducing the currency risk for Canadian investors, Claymore adds.

The fund will automatically convert into an exchange-traded fund if the fund units trade at a discount to net asset value after the date that is 6 months following the closing of the offering.

The offering is being made on a best efforts basis in each of the provinces and territories in Canada through a syndicate of investment dealers led by GMP Securities L.P. and TD Securities Inc., and including Canaccord Capital Corp., BMO Nesbitt Burns Inc., Scotia Capital Inc., Dundee Securities Corp., National Bank Financial Inc., Blackmont Capital Inc., Haywood Securities Inc., Raymond James Ltd., Research Capital Corp., Wellington West Capital Markets Inc., Desjardins Securities Inc., Genuity Capital Markets, HSBC Securities (Canada) Inc., Richardson Partners Financial Limited and Rothenberg Capital Management Inc.

IE