Sprott Inc. Press Releases
Sprott Completes Acquisition of Tocqueville Gold Strategies and Provides Preliminary AUM Update
TORONTO and NEW YORK, Jan. 17, 2020 (GLOBE NEWSWIRE) -- Sprott Inc. (TSX: SII) (“Sprott”) announced today that it has successfully completed its previously announced acquisition by Sprott Asset Management LP (“SAM”) of Tocqueville Asset Management L.P. (“Tocqueville”) gold strategies for total consideration of up to US$50 million, comprised of a payment at closing of US$12.5 million in cash and US$2.5 million in Sprott common shares based on a five-day volume weighted adjusted price. Tocqueville is also eligible to receive contingent consideration valued at up to an additional US$30 million in cash and Sprott common shares valued at US$5 million, subject to the achievement of certain financial performance conditions over the two years following closing. This transaction adds approximately C$2.3 billion (US$1.8 billion) to Sprott’s total Assets Under Management (“AUM”).
“The completion of this acquisition is a significant milestone for Sprott and the result of months of integration and planning,” said Whitney George, President of Sprott. “With the addition of John Hathaway and Douglas Groh, we believe we now have the world’s leading gold investment team in terms of sector experience, depth and technical expertise.”
“We are delighted to join Sprott, a globally-recognized organization with a long history in precious metals investments,” said John Hathaway, Senior Portfolio Manager of Sprott. “We believe that combining our teams will enhance our investment capabilities and sector expertise as we continue to seek out compelling long-term opportunities for our clients.”
“This acquisition adds meaningful scale to our managed equities business and complements our other resource investment strategies at a time when gold is becoming an increasingly important component of investors’ portfolios,” said Peter Grosskopf, CEO of Sprott. “Sprott has now built a global full service platform to offer a broad spectrum of precious metal investment strategies, ranging from bullion to private equity, to investors in North America, Europe, the United Kingdom and Asia.”
Preliminary AUM Update
Sprott estimates that its AUM as of January 17, 2020, is approximately C$14.8 billion (US$11.3 billion) (unaudited), an increase of approximately 40% from December 31, 2018. In addition to the acquisition of the Tocqueville gold strategies in Sprott’s Managed Equities segment, the increase is largely attributable to market value increases in Sprott’s Exchange Listed Products segment and new capital raised in the Company’s Lending segment.
Fund Reorganization and Name Changes
Effective January 17, 2020, both classes of the Tocqueville Gold Fund (TGLDX and TGLIX) have been successfully reorganized into classes of the Sprott Gold Equity Fund (SGDLX and SGDIX). The Falcon Gold Equity UCITS Fund has been renamed the Sprott-Falcon Gold Equity UCITS Fund and Sprott will also sub-advise the Sprott-Falcon Gold Equity Fund.
Sprott is an alternative asset manager and a global leader in precious metal and real asset investments. Through its subsidiaries in Canada, the U.S. and Asia, Sprott is dedicated to providing investors with specialized investment strategies that include Exchange Listed Products, Lending, Managed Equities and Brokerage. Sprott’s common shares are listed on the Toronto Stock Exchange under the symbol (TSX: SII). For more information, please visit www.sprott.com.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus which should be considered carefully before investing. Call 888.622.1813 to obtain the prospectus. Sprott Global Resource Investments Ltd. is the Fund’s distributor.
Forward Looking Statements
This press release contains statements that constitute “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities laws. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. In particular, but without limiting the forgoing, this press release contains forward-looking statements pertaining to the acquisition of the Tocqueville gold strategies asset management business, the AUM added as a result of the transaction, the impact of certain portfolio managers joining SAM and the impact of the transaction on Sprott’s business and strategies. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Sprott to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, without limitation, risk and uncertainties that are inherent in the nature of the transaction, including: failure to realize anticipated synergies; risks regarding integration; incorrect assessments of the values of the acquired assets and revenue growth of Sprott. As a result of the foregoing, readers should not place undue reliance on the forward-looking statements contained in this press release concerning the completion of the transaction or the timing thereof.
Forward-looking statements contained herein are made as of the date of this press release and Sprott disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management’s estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
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