Sprott Inc. (TSX: SII) (“Sprott” or “the Company”) announced today
that, as of March 31, 2020, Sprott’s estimated total Assets Under
Management was US$10.6 billion. The Company has implemented its
Business Continuity Plan in response to COVID-19. Sprott’s
portfolio managers, brokerage professionals and enterprise shared
service teams are fully operational and focused on managing client
portfolios.
Normal Course Issuer Bid
Update
Sprott also announced that it has received
approval from the Toronto Stock Exchange (“TSX”) to amend its
normal course issuer bid (“NCIB”) in order to enter into an
automatic repurchase plan with its designated broker and to
purchase its own common shares (the “Shares”) through the
facilities of the TSX, alternative Canadian trading systems and/or
any other non-Canadian stock exchange on which the Shares may
become listed.
The automatic repurchase plan allows for
purchases by Sprott of the Shares when Sprott would ordinarily be
prevented from making purchases due to blackout periods. Purchases
will be made by the designated broker based upon the parameters
prescribed by the TSX and the terms of the parties’ written
agreement. Outside of these periods, Shares will be repurchased in
accordance with management’s discretion and in compliance with
applicable law.
Other NCIB Information
Purchases under the NCIB began on November 15,
2019, will end no later than November 14, 2020, and will be made
through the facilities of the TSX, alternative Canadian trading
systems and/or any other non-Canadian stock exchange on which the
Shares may become listed, in each case in accordance with the
applicable requirements, and as otherwise permitted under
applicable securities laws. It is expected that the maximum number
of Shares which may be purchased by Sprott during the NCIB will not
exceed 6,345,112 being approximately 2.5% of 253,804,511
(representing the number of issued and outstanding Shares as of
October 31, 2019). The average daily trading volume (the “ADTV”) of
the Shares on the TSX for the six-month period ended October 31,
2019 was 281,130. Under the rules of the TSX, as amended by TSX
Staff Notice 2020-0002, Sprott is entitled to repurchase during the
same trading day on the TSX up to 50% of the ADTV of the Shares,
being 140,564 Shares from March 23, 2020 up to and including June
30, 2020, and thereafter repurchase during the same trading day on
the TSX up to 25% of the ADTV of the Shares, being 70,282 Shares,
except where such purchases are made in accordance with the “block
purchase” exemption under applicable TSX policy. Sprott will effect
purchases at varying times commencing on November 15, 2019 and
ending on November 14, 2020. Under its prior NCIB that commenced on
November 15, 2018 and was suspended in November 2019, Sprott
previously sought and received approval from the TSX to repurchase
up to 12,633,752 Shares. Sprott did not purchase any Shares
pursuant to its previously authorized NCIB. From November 15, 2019
through April 3, 2020, Sprott repurchased 1,864,036 of its Shares
at a weighted average price of $2.71, per Share, for total cash
consideration of $5,043,620.
In addition to providing shareholders liquidity,
Sprott believes that the Shares have been trading in a price range
which does not adequately reflect the value of such Shares in
relation to Sprott’s business and its future prospects.
About SprottSprott 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
specialized 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
Shares are listed on the Toronto Stock Exchange under the symbol
(TSX: SII). For more information, please visit www.sprott.com.
Forward Looking StatementsThis
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.
Forward looking statements in this press release
are based on certain key expectations and assumptions made by
Sprott, including expectations and assumptions concerning: Sprott’s
views with respect to its financial condition and prospects,
the stability of general economic and market conditions, currency
exchange rates and interest rates, the availability of cash for
repurchases of Shares under the NCIB, implementation of the
automatic repurchase plan, the existence of alternative uses for
Sprott’s cash resources and compliance with applicable laws and
regulations pertaining to the NCIB.
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. As a result of the foregoing, readers should not place
undue reliance on the forward-looking statements contained in this
press release. 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. Sprott
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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