ASA Gold and Precious Metals Stock Price, News & Analysis

Saba Capital Management, ASA Gold and Precious Metals 's (NYSE: ASA) largest shareholder with 17.2% ownership, has filed a lawsuit against ASA and its legacy Board members over an unlawful poison pill. The lawsuit follows the Court's March 28th ruling that declared ASA's previous shareholder rights plan violated the Investment Company Act of 1940.

The controversial poison pill has been in effect for over 474 days, preventing Saba from purchasing additional shares. After the Court's ruling, ASA quickly readopted a substantively identical pill, prompting further legal action. The dispute highlights ongoing governance issues, including the formation of 'Shadow Board' committees that excluded newly elected directors from critical decisions.

Saba seeks recission of the newly adopted poison pill, a declaration of its violation of federal law, and an injunction against further implementation. The firm argues that ASA's actions prioritize fees and self-preservation over shareholder interests.

Saba Capital Management, ASA Gold and Precious Metals 's (NYSE: ASA) largest shareholder, has filed a motion with the U.S. District Court for the Southern District of New York to invalidate ASA's latest poison pill issued on March 31, 2025.

This follows the Court's March 28, 2025 ruling that ASA's previous poison pill violated the Investment Company Act of 1940. The Court found that ASA and directors William Donovan, Bruce Hanson, Mary Joan Hoene, and Axel Merk broke federal law, citing entrenchment as a plausible motivation.

Despite the Court's decision to rescind the poison pill, ASA issued an extension the next business day. Saba's founder Boaz Weinstein is calling for the directors to return millions in shareholder capital spent defending the poison pill and their board compensation from the past two years.

ASA Gold and Precious Metals (NYSE: ASA) has adopted a -duration shareholder rights plan through July 29, 2025, in response to Saba Capital Management's efforts to gain board control. The plan was implemented after Saba, holding approximately 17.18% of ASA's shares, placed two directors on the board and seeks further control without presenting clear plans for the company's future.

The Rights Plan grants shareholders one right per common share as of April 9, 2025, becoming exercisable if any entity acquires 15% or more of ASA's shares. Current holders above 15% are grandfathered but cannot acquire additional 0.25% or more shares without triggering the plan. If triggered, shareholders can purchase additional shares at $1.00 per share or exchange rights for common shares.

The company recently implemented shareholder-friendly initiatives, including a stock repurchase plan and doubling the distribution rate to $0.04 per share during fiscal year 2024.

ASA Gold and Precious Metals (NYSE: ASA) faces a legal setback as the United States District Court for the Southern District of New York ruled against the company's December 2024 shareholder rights plan. The court's March 28, 2025 judgment determined that the rights plan violated the Investment Company Act of 1940's requirement for rights plans to expire within 120 days of issuance.

The December 2024 Rights Plan has been deemed rescinded and is no longer in effect. Previously adopted rights plans had already expired according to their terms. The case, Saba Capital Master Fund, v. ASA Gold and Precious Metals (No. 24-CV-690), will be appealed by the company's Litigation Committee.

ASA Gold and Precious Metals (NYSE: ASA) has declared a distribution of $0.03 per common share, payable on May 14, 2025, to shareholders of record as of May 5, 2025. This represents a $0.01 increase compared to last year's distribution.

The Company, a non-diversified closed-end fund, has maintained uninterrupted distributions since 1959. ASA focuses on long-term capital appreciation through investments in precious metals and minerals companies. Their fundamental policy requires at least 80% of total assets to be invested in:

• Common shares of companies in precious metals exploration, mining, or processing
• Direct holdings of precious metals bullion
• Instruments representing precious metals interests
• Securities of investment companies tracking precious metals

The Company employs bottom-up fundamental analysis and detailed primary research in their investment approach, including executive meetings and site visits.

ASA Gold and Precious Metals has adopted a new -duration shareholder rights plan through December 20, 2024, aimed at protecting against creeping control by Saba Capital Management, which currently holds 17.18% of ASA's shares. The plan follows Saba's proxy contest in early 2024 that resulted in two Saba-proposed directors joining the board.

The Rights Plan will issue one right per common share as of January 9, 2025, becoming exercisable if any entity acquires 15% or more of ASA's shares. Existing shareholders above 15% ownership are grandfathered but cannot acquire additional shares exceeding 0.25% without triggering the plan. If triggered, shareholders can purchase additional shares at $1.00 per share or exchange rights for common shares.

ASA Gold and Precious Metals (NYSE: ASA) has declared a distribution of $0.02 per common share, payable on November 20, 2024, to shareholders of record as of November 13, 2024. This represents a $0.01 increase compared to last year, doubling the rate paid semi-annually since November 2018. The Company, a non-diversified, closed-end fund, has maintained uninterrupted distributions since 1959.

ASA focuses on long-term capital appreciation through investments in precious metals and minerals companies. At least 80% of its total assets are invested in related securities, bullion, or instruments. The Company employs bottom-up fundamental analysis and detailed primary research in its investment decisions. Merk Investments provides investment advisory services for ASA.

Investors should note that ASA is classified as a "passive foreign investment company" for U.S. federal income tax purposes, and shareholders with taxable accounts are advised to consult their tax advisors.

ASA Gold and Precious Metals (NYSE:ASA) has adopted a -duration shareholder rights plan to protect long-term value for all shareholders. The plan, effective until December 20, 2024, aims to prevent Saba Capital Management from gaining creeping control of the company. Saba currently holds approximately 17.02% of ASA's outstanding common shares. The Rights Plan Committee believes Saba's control would be detrimental to ASA and its shareholders.

The plan allows shareholders to purchase additional shares at a discount if any entity acquires 15% or more of ASA's outstanding common shares. Existing shareholders with over 15% ownership are grandfathered but cannot acquire an additional 0.25% or more without triggering the plan. The Committee seeks to engage with shareholders, including Saba, to develop alternatives for enhancing shareholder value.