/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
TORONTO,
July 15, 2014 /CNW/ - Sprott Inc.
("Sprott" or the "Corporation") (TSX: SII) announced
today the completion of its previously announced secondary offering
(the "Offering") of common shares of the Corporation (the
"Shares") held by 2176423 Ontario Ltd., a company controlled
by Eric Sprott (the "Selling
Shareholder"). An aggregate of 20,000,000 Shares were sold to a
syndicate of underwriters co-led by TD Securities Inc. and Scotia
Capital Inc., and including RBC Dominion Securities Inc., CIBC
World Markets Inc., GMP Securities L.P., Canaccord Genuity Corp.,
Cormark Securities Inc. and Desjardins Securities Inc., at a price
of $3.00 per Share (the "Issue
Price") for gross proceeds of $60,000,000.
The Corporation did not receive any proceeds
from the Offering. The Selling Shareholder intends to use the
proceeds from the Offering to invest in funds and securities
managed by Sprott or its affiliates, with a focus on precious
metals-related investments.
The Selling Shareholder has also agreed 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. Closing of the
Private Placement is expected to occur in the next few weeks.
The Selling Shareholder has granted the
underwriters an over-allotment option to purchase up to an
additional 3,000,000 Shares at the Issue Price (the
"Over-Allotment Option"), exercisable in whole or in part at
any time for a period of up to 30 days following closing of the
Offering.
Without giving effect to the Private Placement
or the Over-Allotment Option, the Selling Shareholder now owns an
approximate 27.44% interest in the Corporation. Without giving
effect to the Private Placement but assuming the Over-Allotment
Option is exercised in full, the Selling Shareholder will own an
approximate 26.23% interest in the Corporation.
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 Corporation 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 its Shares
are 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 press 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 press release
contains Forward-Looking Statements pertaining to the use of
proceeds by the Selling Shareholder and the expected closing date
of the Private Placement.
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 that the Selling
Shareholder will invest the net proceeds of the Offering as
disclosed in this press release. Although the Corporation 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 Corporation can give no
assurance that such expectations and assumptions will prove to be
correct. The Forward-Looking Statements included in this press
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)
circumstances relating to the Selling Shareholder resulting in a
change of investment in respect of the net proceeds; (ii) those
risks listed under the heading "Risk Factors" in the Corporation's
annual information form dated March 27,
2014; (iii) those risks disclosed under the heading
"Managing Risk" in the Corporation's MD&A for the three months
ended March 31, 2014; and (iv) other
risks, which are beyond the control of the Corporation 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 press release.
In addition, the payment of dividends is not guaranteed and the
amount and timing of any dividends payable by the Corporation will
be at the discretion of the Board of Directors of the Corporation
and will be established on the basis of the Corporation'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
press release speak only as of the date of this press release, and
the Corporation 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.