Sprott Inc. Press Releases


Press Release

Sprott Inc. amends and restates business acquisition report

        TORONTO, July 29 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott") today filed an  amended and restated business acquisition report. Effective May 15, 2008,  Sprott acquired all of the outstanding shares of Sprott Asset Management Inc.  ("SAM") pursuant to the terms of a share exchange agreement among SAM, the  shareholders of SAM and Sprott. The effect of the acquisition of SAM on the  assets and operations of Sprott are set out in detail in the pro forma  financial statements included in the prospectus of Sprott dated May 8, 2008  (the "Prospectus") and in the section of the Prospectus entitled "Selected  Adjusted Financial Information".      Sprott's business acquisition report was amended and restated due to  adjustments to retained earnings of SAM that relate to accruals for employer  health taxes ("EHT") associated with SAM's bonus expenses in 2006 and 2007.  Such EHT were originally recorded at the time the bonuses were paid rather  than when the bonus expense was accrued. In the second quarter of 2008, a  determination was made that the accrual and related expense should be recorded  in the period the bonus is accrued.      The adjustment resulted in the following changes to amounts originally  reported in SAM's unaudited interim consolidated financial statements for the  three months ended March 31, 2008 which were disclosed in Sprott's business  acquisition report dated June 27, 2008 as amended on July 18, 2008: a) a  decrease of $2.3 million to compensation and benefits expense for the three  months ended March 31, 2008 and March 31, 2007; b) a related increase in  provision for income taxes of $0.8 million for the three months ended  March 31, 2008 and March 31, 2007; c) an increase of $2.3 million in  compensation payable and a decrease of $0.8 million in income taxes payable as  at December 31, 2007 and December 31, 2006 and a related decrease to retained  earnings as at December 31, 2006 and December 31, 2007 in the amount of $1.5  million.      Furthermore, for the three months ended March 31, 2008, the decrease in  EHT resulted in an incremental increase of $0.575 million (25% of  $2.3 million) to SAM's discretionary bonus pool and a related decrease of  $0.193 million to the provision for income taxes, with the same changes  reflected on SAM's balance sheet for compensation payable and income taxes  payable, respectively.      The above adjustment did not result in a restatement of SAM's 2005, 2006  and 2007 annual consolidated financial statements because the amount of the  adjustment is not material to the annual financial statements. The amount was  only material for the first quarter of 2007 and first quarter of 2008, which  were both amended, as described above.        About Sprott Inc.        Sprott Inc., through its wholly-owned subsidiary Sprott Asset Management  Inc., is an independent asset management company with approximately  $6.8 billion of assets under management mainly among its 21 investment funds,  discretionary managed accounts and management of certain public companies.  Sprott Asset Management Inc. has a history of offering investment management  services to high net worth individuals and institutions for more than  26 years. For more information about Sprott Inc., please visit  www.sprottinc.com.          

Sprott uses cookies to understand how you use our website and to improve your experience. This includes personalizing content on our website and third-party websites. To learn more and to manage your advertising preferences, see our Cookie Policy


Important Message

You are now leaving Sprott.com and entering a linked website. Sprott has partnered with ALPS in offering Sprott ETFs. For fact sheets, marketing materials, prospectuses, performance, expense information and other details about the ETFs, you will be directed to the ALPS/Sprott website at SprottETFs.com.

Continue to Sprott Exchange Traded Funds

Important Message

You are now leaving Sprott.com and entering a linked website. Sprott Asset Management is a sub-advisor for several mutual funds on behalf of Ninepoint Partners. For details on these funds, you will be directed to the Ninepoint Partners website at ninepoint.com.

Continue to Ninepoint Partners

Important Message

You are now leaving sprott.com and linking to a third-party website. Sprott assumes no liability for the content of this linked site and the material it presents, including without limitation, the accuracy, subject matter, quality or timeliness of the content. The fact that this link has been provided does not constitute an endorsement, authorization, sponsorship by or affiliation with Sprott with respect to the linked site or the material.