Claymore Gold Bullion Trust has filed a final prospectus for its domestic initial public offering of units, Toronto-based Claymore Investments, Inc. said Wednesday.

The minimum amount of the offering is $200 million and the maximum amount is $400 million. Closing is scheduled for May 28.

The offering price per unit is $10, with each unit being comprised of one transferable trust unit and one warrant, which is exercisable to acquire an additional unit for $10 at any time before 16:00 ET on the date that is six months following the closing of the offering.

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

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

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

Claymore says 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 six 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 Genuity Capital Markets, Canaccord Capital Corp.., Dundee Securities Corp., Richardson Partners Financial Limited, Scotia Capital Inc., Blackmont Capital Inc., Desjardins Securities Inc., Haywood Securities Inc., Burgeonvest Securities Limited, FirstEnergy Capital Corp., HSBC Securities (Canada) Inc., Research Capital Corp., Rothenberg Capital Management Inc. and Wellington West Capital Markets Inc.

The Toronto Stock Exchange has conditionally approved the listing of the trust units and warrants. The trust units and warrants are expected to commence trading under the symbol CGL.UN and CGL.WT, respectively.

IE