As a first listing of an exchange-traded commodity the firm has undertaken, Hill Dickinson’s Corporate team has recently advised Zipa Precious Metals Public Limited Company in connection with the approval of a base prospectus relating to the listing and the admission of the SMO Physical Gold ETC securities to trading on the Main Market of the London Stock Exchange. The ’Gold Securities’ were admitted to trading on 22 April 2024, with the ticker ‘BARS’.
Zipa’s Gold Securities are intended to offer investors a means of investing in gold without the necessity of taking physical delivery of gold, therefore investors would not need to bear the associated costs and could buy and sell that interest through the trading of a security on a stock exchange. Gold Securities are for subscription only to authorised participants, but non-authorised participant securityholders may buy and sell the securities by trading on the Main Market of the London Stock Exchange or in the global over-the-counter market for the trading of gold. If certain requirements are met, they are also able to redeem Gold Securities directly with Zipa which will, in general, be satisfied in physical gold stored in the secured vaults of Zipa’s custodian. All gold conforms to the rules of the London Bullion Market Association.
Zipa can issue up to 10 billion Gold Securities under the programme established by the base prospectus.
Hill Dickinson’s team was led by partners Francois De Lange and Shantanu Sinha, and assisted by associate Amelia Chung.
Commenting on the listing, Francois De Lange said: “We are pleased to have advised Zipa Precious Metals on their SMO Physical Gold ETC, a first for the Hill Dickinson Corporate team. The SMO Physical Gold ETC’s mission is to drive universal change in the gold producing industry by guaranteeing traceability of gold back to the mine of origin by segregating all elements of the supply chain and refining process.”