THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES
TORONTO,
June 24, 2014 /CNW/ - Sprott Inc.
("Sprott" or the "Corporation") (TSX: SII) announced today that
2176423 Ontario Ltd., a company controlled by Eric Sprott (the "Selling Shareholder"), has
entered into an agreement with a syndicate of underwriters co-led
by TD Securities Inc. and Scotiabank, pursuant to which the
underwriters will purchase from the Selling Shareholder, on a
bought deal basis, 20,000,000 common shares of the Corporation (the
"Shares") at a price of $3.00 per
Share (the "Issue Price") for gross proceeds of $60,000,000 (the "Offering"). The Selling
Shareholder has also granted the underwriters an over-allotment
option to purchase up to an additional 3,000,000 Shares at the
Issue Price, exercisable in whole or in part at any time for a
period of up to 30 days following closing of the Offering, to cover
over-allotments.
Concurrent with the Offering, the Selling
Shareholder intends to enter into an agreement 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. The Corporation will not
receive any proceeds from the Offering or the Private Placement.
All proceeds will be payable to the Selling Shareholder. The
Selling Shareholder intends to use a substantial portion of the net
proceeds from the Offering to invest in funds and securities
managed by Sprott or its affiliates, with a focus on precious
metal-related investments.
The offering is expected to close on or about
July 15, 2014 and is subject to
certain conditions including, but not limited to, the receipt of
all necessary approvals, including the approval of the Toronto
Stock Exchange. Following closing of the Offering and the Private
Placement, the Selling Shareholder will retain an approximate 25.4%
ownership in the Corporation (24.2% ownership if the over-allotment
option is exercised in full).
A preliminary short-form prospectus will be
filed by no later than June 30, 2014
with the securities regulatory authorities in all provinces and
territories of Canada (excluding
Quebec). No securities regulatory
authority has either approved or disapproved of the contents of
this news release.
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
Company 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 is 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 news 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 news release contains Forward-Looking Statements
pertaining to: (i) closing of the Offering and Private Placement,
and (ii) use of proceeds by the Selling Shareholder.
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: (i) the fact that all
required approvals will be received for the Offering and Private
Placement, and (ii) that the Selling Shareholder will invest the
net proceeds of the Offering as disclosed in this release. Although
the Company 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
Company can give no assurance that such expectations and
assumptions will prove to be correct. The Forward-Looking
Statements included in this news 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) the Offering not
proceeding as expected as a result of the conditions of the
Offering not being satisfied or the Offering being terminated; (ii)
the Private Placement not proceeding as expected as a result of the
conditions of the Private Placement not being satisfied or the
Private Placement being terminated; (iii) circumstances
relating to the Selling Shareholder resulting in a change of
investment in respect of the net proceeds; (iv) those risks listed
under the heading "Risk Factors" in the Company's annual
information form dated March 27,
2014; (v) those risks disclosed under the heading "Managing
Risk" in the Company's MD&A for the three months ended
March 31, 2014; and (vi) other risks,
which are beyond the control of the Company 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 news release. In addition, the payment
of dividends is not guaranteed and the amount and timing of any
dividends payable by the Company will be at the discretion of the
Board of Directors of the Company and will be established on the
basis of the Company'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
news release speak only as of the date of this news release, and
the Company 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.