Sprott Focus Trust, Inc. Intends to Declare First Quarter Common Stock Distribution
TORONTO, March 23, 2015 /CNW/ - Sprott Focus Trust, Inc. (Nasdaq: FUND) (the "Fund") intends to declare a distribution on its Common Stock during April, 2015, or shortly thereafter. The Fund plans to declare this distribution provided the U.S. Securities and Exchange Commission (the "SEC") grants the Fund's application for an order allowing the Fund to continue its practice of making quarterly distributions (the "Order").
The Fund had previously made quarterly distributions pursuant to an SEC order that applied to the Fund and its former investment adviser, Royce & Associates, LLC ("Royce"). On February 26, 2015, the Fund's stockholders voted to transfer investment management of the Fund from Royce to Sprott Asset Management LP ("Sprott Asset") and Sprott Asset Management USA Inc. ("Sprott USA"). Sprott Asset and Sprott USA began serving as the Fund's investment adviser and investment sub-adviser, respectively, effective March 6, 2015. The transition from Royce to Sprott required the Fund to obtain a new SEC order allowing it to continue making quarterly distributions. The Fund's Board of Directors approved the SEC application and adopted the Fund's Distribution Policy at a special meeting held on March 9, 2015.
The Fund has adopted a Distribution Policy of paying quarterly distributions on its Common Stock, which would be implemented if the Order is granted. Distributions would be made at the annual rate of 5% of the rolling average of the prior four calendar quarter-end net asset values (NAVs), with the fourth quarter distribution being the greater of 1.25% of the rolling average or the minimum distribution required by IRS regulations. The policy, including the annual rate, is subject to change at the discretion of the Fund's Board of Directors.
About Sprott Focus Trust, Inc.
Sprott Focus Trust, Inc. (the "Fund") is a closed-end diversified management investment company whose shares of common stock are listed and traded on the Nasdaq National Market. The Fund's investment goal is long-term capital growth, which it seeks by normally investing at least 65% of its assets in equity securities.
SOURCE Sprott Focus Trust, Inc.
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