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TORONTO, July 15, 2014 /CNW/ - Sprott Inc. ("Sprott" or the "Corporation") (TSX: SII) announced today the completion of its previously announced secondary offering (the "Offering") of common shares of the Corporation (the "Shares") held by 2176423 Ontario Ltd., a company controlled by Eric Sprott (the "Selling Shareholder"). An aggregate of 20,000,000 Shares were sold to a syndicate of underwriters co-led by TD Securities Inc. and Scotia Capital Inc., and including RBC Dominion Securities Inc., CIBC World Markets Inc., GMP Securities L.P., Canaccord Genuity Corp., Cormark Securities Inc. and Desjardins Securities Inc., at a price of $3.00 per Share (the "Issue Price") for gross proceeds of $60,000,000.
The Corporation did not receive any proceeds from the Offering. The Selling Shareholder intends to use the proceeds from the Offering to invest in funds and securities managed by Sprott or its affiliates, with a focus on precious metals-related investments.
The Selling Shareholder has also agreed to sell, on a non-brokered private placement basis (the "Private Placement"), 5,000,000 Shares at the Issue Price to the Sprott Inc. 2011 Employee Profit Sharing Plan Trust. Closing of the Private Placement is expected to occur in the next few weeks.
The Selling Shareholder has granted the underwriters an over-allotment option to purchase up to an additional 3,000,000 Shares at the Issue Price (the "Over-Allotment Option"), exercisable in whole or in part at any time for a period of up to 30 days following closing of the Offering.
Without giving effect to the Private Placement or the Over-Allotment Option, the Selling Shareholder now owns an approximate 27.44% interest in the Corporation. Without giving effect to the Private Placement but assuming the Over-Allotment Option is exercised in full, the Selling Shareholder will own an approximate 26.23% interest in the Corporation.
This press release is not an offer of securities for sale in the United States. The Shares being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to achieving superior returns for its clients over the long term. The Corporation currently operates primarily through six business units: Sprott Asset Management LP, Sprott Private Wealth LP, Sprott Consulting LP, Sprott Resource Lending Corp., Sprott Toscana and Sprott U.S. Holdings Inc. Sprott Asset Management is the investment manager of the Sprott family of mutual funds and hedge funds and discretionary managed accounts; Sprott Private Wealth provides wealth management services to high net worth individuals; and Sprott Consulting and Sprott Toscana provide management, administrative and consulting services to other companies. Sprott Resource Lending provides lending services to mining and energy sectors. Sprott U.S. Holdings Inc. includes Sprott Global Resource Investments Ltd., Sprott Asset Management USA Inc., and Resource Capital Investments Corporation. Sprott Inc. is headquartered in Toronto, Canada, and its Shares are listed on the Toronto Stock Exchange under the symbol "SII". For more information on Sprott Inc., please visit www.sprottinc.com.
Forward-Looking Information and Statements
This press release contains certain forward-looking information and statements (collectively referred to herein as "Forward-Looking Statements") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify Forward-Looking Statements. In particular, but without limiting the forgoing, this press release contains Forward-Looking Statements pertaining to the use of proceeds by the Selling Shareholder and the expected closing date of the Private Placement.
Forward-Looking Statements are based on a number of expectations or assumptions, which have been used to develop such information and statements but which may prove to be incorrect, including, but not limited to that the Selling Shareholder will invest the net proceeds of the Offering as disclosed in this press release. Although the Corporation believes the expectations and assumptions reflected in such Forward-Looking Statements are reasonable, undue reliance should not be placed on Forward-Looking Statements because the Corporation can give no assurance that such expectations and assumptions will prove to be correct. The Forward-Looking Statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors, which may cause actual results or events to differ materially from those anticipated in such Forward-Looking Statements, including, without limitation, (i) circumstances relating to the Selling Shareholder resulting in a change of investment in respect of the net proceeds; (ii) those risks listed under the heading "Risk Factors" in the Corporation's annual information form dated March 27, 2014; (iii) those risks disclosed under the heading "Managing Risk" in the Corporation's MD&A for the three months ended March 31, 2014; and (iv) other risks, which are beyond the control of the Corporation or its subsidiaries. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the Forward-Looking Statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements contained in this press release. In addition, the payment of dividends is not guaranteed and the amount and timing of any dividends payable by the Corporation will be at the discretion of the Board of Directors of the Corporation and will be established on the basis of the Corporation's earnings, the satisfaction of solvency tests imposed by applicable corporate law for the declaration and payment of dividends, and other relevant factors.
The Forward-Looking Statements contained in this press release speak only as of the date of this press release, and the Corporation does not assume any obligation to publicly update or revise any of the included Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
SOURCE Sprott Inc.
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