MARKHAM, ONTARIO--(Marketwired - Aug. 29, 2014) - Bullion Management Services Inc. (the "Manager") announces the completion of the merger of the BMG Gold Advantage Return BullionFund (the "Fund") with the BMG Gold BullionFund (the "Continuing Fund") on a taxable basis effective as of August 28, 2014 (the "Effective Date").
The unitholders of the Fund approved the Merger at a special meeting of unitholders on August 22, 2014 and regulatory approval for the Merger was received on August 28, 2014.
Pursuant to the Merger, units of the Continuing Fund were distributed to unitholders of the Fund in exchange for the units they held in the Fund on a class-by-class and dollar-for-dollar basis. Unitholders of the Fund who become unitholders of the Continuing Fund will have the right to redeem their units of the Continuing Fund for 60 days after the Effective Date. The Manager will waive any redemption-related costs such as redemption fees and short-term trading fees for investors who previously held units of the Fund who redeem their units of the Continuing Fund during this 60 day period.
All unitholders of the Continuing Fund (including former unitholders of the Fund) may open a systematic withdrawal plan (the "SWP") under which a unitholder can pre-arrange with their dealer/adviser to automatically redeem units held by the unitholder so as to receive withdrawals of $0.07 per unit per month or any other amount as the unitholder deems appropriate. Therefore, unitholders of the Fund who received $0.07 per unit per month as a return of their capital may choose to redeem units of the Continuing Fund after the Merger representing the same dollar amount that they currently receive each month until such time as the unitholder's original investment has been used up. If the units of the Fund were held by a unitholder as capital property for income tax purposes before the Merger, a return of capital would have reduced the adjusted cost base of the unitholder's units, but would not have resulted in an income inclusion. However, if the return of capital before the Merger had exceeded the adjusted cost base of the unitholder's units, the excess would have been taxed as a capital gain. After the Merger, under the SWP, a unitholder redeeming a portion of their units will realize a capital gain or a capital loss depending on whether or not the amount paid to the unitholder exceeds or is less than the adjusted cost base of the units being redeemed by the unitholder.
Following the completion of the Merger, the Fund is now terminated.
For more information on the Merger and the Funds managed by Bullion Management Services Inc., please visit our website at www.bmgbullion.com
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 Fund, the Continuing Fund and/or the Manager. The forward-looking statements are not historical facts but reflect the Fund's, the Continuing Fund's, and/or 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. Although the Fund, the Continuing Fund, and/or the Manager believes 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 Fund, the Continuing Fund and/or the Manager undertakes 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 FURTHER INFORMATION PLEASE CONTACT:
Vice President Legal, Chief Compliance Officer
Bullion Management Services Inc.
Source: Bullion Management Group Inc.