TORONTO, Feb. 7 /CNW/ - Sprott Inc. (TSX:SII) ("Sprott") today announced it has completed its acquisition of Global Resource
Investments, Ltd., Terra Resource Investment Management, Inc. and
Resource Capital Investment Corporation (collectively, the "Global Companies"). In addition, Rick Rule, founder of the Global Companies, has joined
the Sprott investment and management teams.
The purchase price was satisfied by the issue of 19,467,500 common
shares of Sprott with a value of $8.67 per share, being the closing
price of Sprott shares on the Toronto Stock Exchange on February 4,
2011. An additional 532,500 common shares of Sprott will be provided to
employees of the Global Companies after closing. In addition, the
seller and certain current and future employees will be eligible to
earn up to an additional eight million common shares of Sprott with the
achievement of certain EBITDA targets by the Global Companies.
Since the initial announcement of the proposed transaction in September
2010, the investment performance of the Global Companies' assets under
management has been exceptionally strong, similar to the results
generated by the equity mutual funds and hedge funds managed by Sprott.
"We are delighted to have completed this transaction and will move
quickly to integrate the Global Companies with the Sprott Group of
Companies. We look forward to working together to execute on the
business development activities that we are initiating," said Peter
Grosskopf, CEO of Sprott. "Combining the significant investment talents
of both organizations will enable us to provide clients in Canada, the
U.S. and abroad with access to a broader range of investment
opportunities. We also expect the acquisition of the Global Companies
to be immediately accretive to Sprott shareholders."
This release contains "forward-looking statements" which reflect the
current expectations of Sprott Inc. These statements reflect
management's current beliefs with respect to future events and are
based on information currently available to management. Forward-looking
statements in this press release include, but are not limited to, the
anticipated benefits from the transaction. Forward-looking statements
involve significant known and unknown risks, uncertainties and
assumptions, including with respect to the anticipated benefits from
the transaction. Many factors could cause actual results, performance
or achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by such
forward-looking statements including, without limitation, those listed
under the heading "Risk Factors" in Sprott's annual information form
dated March 30, 2010. 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 release. Although
the forward-looking statements contained in this release are based upon
what Sprott believes to be reasonable assumptions, management cannot
assure investors that actual results, performance or achievements will
be consistent with these forward-looking statements. These
forward-looking statements are made as of the date of this release and
Sprott does not assume any obligation to update or revise them to
reflect new events or circumstances, except as required by law.
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 through four distinct business units:
Sprott Asset Management LP, Sprott US Holdings Inc., Sprott Private
Wealth LP and Sprott Consulting LP. Sprott Asset Management is the
investment manager of the Sprott family of mutual funds and hedge funds
and discretionary managed accounts; Sprott US Holdings Inc. is the US
holding company for Sprott's US investment management and specialized
broker services (the Global Companies); Sprott Private Wealth provides
wealth management services to high net worth individuals; and Sprott
Consulting provides management, administrative and consulting services
to other companies, including Sprott Resource Corp. (TSX: SCP) and
Sprott Resource Lending Corp. (TSX: SIL; NYSE Amex: SILU). 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.
SOURCE Sprott Inc.
For further information:
Investor contact information: (416) 203-2310 or 1 (877) 403-2310 or firstname.lastname@example.org.