TORONTO, Feb. 7 /CNW/ - Sprott Inc. (TSX:SII) ("Sprott") today announced it has completed its acquisition of Global Resource Investments, Ltd., Terra Resource Investment Management, Inc. and Resource Capital Investment Corporation (collectively, the "Global Companies"). In addition, Rick Rule, founder of the Global Companies, has joined the Sprott investment and management teams.
The purchase price was satisfied by the issue of 19,467,500 common shares of Sprott with a value of $8.67 per share, being the closing price of Sprott shares on the Toronto Stock Exchange on February 4, 2011. An additional 532,500 common shares of Sprott will be provided to employees of the Global Companies after closing. In addition, the seller and certain current and future employees will be eligible to earn up to an additional eight million common shares of Sprott with the achievement of certain EBITDA targets by the Global Companies.
Since the initial announcement of the proposed transaction in September 2010, the investment performance of the Global Companies' assets under management has been exceptionally strong, similar to the results generated by the equity mutual funds and hedge funds managed by Sprott.
"We are delighted to have completed this transaction and will move quickly to integrate the Global Companies with the Sprott Group of Companies. We look forward to working together to execute on the business development activities that we are initiating," said Peter Grosskopf, CEO of Sprott. "Combining the significant investment talents of both organizations will enable us to provide clients in Canada, the U.S. and abroad with access to a broader range of investment opportunities. We also expect the acquisition of the Global Companies to be immediately accretive to Sprott shareholders."
This release contains "forward-looking statements" which reflect the current expectations of Sprott Inc. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements in this press release include, but are not limited to, the anticipated benefits from the transaction. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions, including with respect to the anticipated benefits from the transaction. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including, without limitation, those listed under the heading "Risk Factors" in Sprott's annual information form dated March 30, 2010. 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 release. Although the forward-looking statements contained in this release are based upon what Sprott believes to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and Sprott does not assume any obligation to update or revise them to reflect new events or circumstances, except as required by law.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to achieving superior returns for its clients over the long term. The company currently operates through four distinct business units: Sprott Asset Management LP, Sprott US Holdings Inc., Sprott Private Wealth LP and Sprott Consulting LP. Sprott Asset Management is the investment manager of the Sprott family of mutual funds and hedge funds and discretionary managed accounts; Sprott US Holdings Inc. is the US holding company for Sprott's US investment management and specialized broker services (the Global Companies); Sprott Private Wealth provides wealth management services to high net worth individuals; and Sprott Consulting provides management, administrative and consulting services to other companies, including Sprott Resource Corp. (TSX: SCP) and Sprott Resource Lending Corp. (TSX: SIL; NYSE Amex: SILU). Sprott Inc. is headquartered in Toronto, Canada, and is listed on the Toronto Stock Exchange under the symbol "SII". For more information on Sprott Inc., please visit www.sprottinc.com.