Saba Capital Files Lawsuit Against ASA Gold and Precious Metals and its Legacy Directors Over Latest Unlawful Poison Pill

Saba Capital Management, L.P. (together with certain of its affiliates, “Saba”), the largest common shareholder of ASA Gold and Precious Metals Limited (NYSE: ASA) (“ASA” or the “Fund”) with 17.2% ownership of the Fund’s outstanding shares, today announced that it has filed a lawsuit in the United States District Court for the Southern District of New York (the “Court”) against ASA and the legacy members of its Board of Directors (the “Board”) – Mary Joan Hoene and William Donovan – regarding their readoption of an unlawful shareholder rights plan after the Court ruled that the previous shareholder rights plan violated the Investment Company Act of 1940 (the “’40 Act”).

Boaz Weinstein, Founder and Chief Investment Officer of Saba, commented:

“By readopting a poison pill that was already deemed unlawful, ASA, Chair Mary Joan Hoene and Director William Donovan have once again demonstrated that their priorities are fees and self-preservation – not advancing the interests of all shareholders and respecting the law. ASA and these entrenched directors have also gone to extreme lengths over the past 16 months to circumvent accountability for their anti-shareholder behavior and poor stewardship of the Fund. As evidence, after shareholders elected two of Saba’s candidates to the four-member Board in April 2024, the legacy directors excluded both new directors from critical matters by forming sham committees that effectively serve as a ‘Shadow Board.’ These committees were purposely structured to maintain exclusive powers related to the poison pill and litigation against Saba, contradicting the clear will of shareholders.

This latest gambit from ASA, Ms. Hoene and Mr. Donovan shows that they are blindly committed to fighting Saba, no matter what the cost is to the Fund’s shareholders. It should be clear that the right path for ASA needs to begin with further shareholder-driven change to the Board. Breaking the current boardroom deadlock by adding a fifth director, who enjoys support from a critical mass of shareholders, will ensure that the Board begins honoring its fiduciary duties and respecting the tenets of sound governance, including by holding an overdue Annual Meeting of Shareholders.”