Sprott Amends Agreement to Acquire Tocqueville Gold Strategies
December 03 2019 - 3:00PM
Sprott Inc. (TSX: SII) ("Sprott") and Tocqueville Asset Management
(“Tocqueville”) today announced that Sprott Asset Management LP
(“SAM”) and Tocqueville have mutually agreed to amend the asset
purchase agreement whereby Sprott will acquire the Tocqueville gold
strategies.
The amendment reduces the Sprott common shares
paid to Tocqueville from common shares valued at US$5 million to
common shares valued at US$2.5 million, and correspondingly
increases the cash payment to Tocqueville at closing from US$10
million to US$12.5 million.
“Given the recent correction in our share price,
our strong balance sheet, and our ongoing normal course bid
activity, we believe this adjustment is best for our long-term
shareholders,” said Whitney George, President of Sprott.
The transaction is still expected to close in
January 2020, subject to security holder approval for certain
acquired strategies, regulatory and stock exchange approvals and
other customary conditions to closing.
About Sprott
Sprott is an alternative asset manager and a
global leader in precious metal and real asset investments. Through
its subsidiaries in Canada, the US and Asia, Sprott is dedicated to
providing investors with best-in-class investment strategies that
include Exchange Listed Products, Lending, Managed Equities and
Brokerage. Sprott is based in Toronto with offices in New York,
Carlsbad and Vancouver and its common shares are listed on the
Toronto Stock Exchange under the symbol (TSX:SII). For more
information, please visit www.sprott.com.
About Tocqueville
The Tocqueville Trust was organized as an
open-end management company in 1986 to hold the Tocqueville Fund,
which launched in 1987. Over the next several decades,
complementary funds were added to create the Tocqueville Family of
Funds (“the Funds”). Tocqueville Asset Management L.P. (“TAM”)
provides investment management and advisory services to all of the
Funds. TAM has been managing institutional and private client
accounts since its founding in 1985 with a focus on growing and
preserving clients’ long-term capital. The experienced investment
professionals of TAM manage accounts, including the Funds,
utilizing independent thinking and rigorous research. For more
information, please visit www.tocquevillefunds.com.
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, including
that the transaction will be completed and the timing thereof.
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 failure to obtain any required security holder,
regulatory, stock exchange and other approvals (or to do so in a
timely manner). The anticipated timeline for completion of the
transaction may change for a number of reasons, including the
inability to secure necessary security holder, regulatory, stock
exchange and other approvals in the time assumed or the need for
additional time to satisfy the conditions to the completion of the
transaction. 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.
Investor contact
information:
Glen WilliamsManaging Director Investor
Relations & Corporate Communications(416)
943-4394gwilliams@sprott.com
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