TORONTO, July 17, 2014 /CNW/ - 2176423 Ontario Ltd. (the "Selling Shareholder"), a company controlled by Eric Sprott, has reduced its ownership of common shares (the "Common Shares") of Sprott Inc. (the "Corporation").
As previously announced by the Corporation on July 15, 2014, the Selling Shareholder sold, though a secondary offering (the "Offering"), 20,000,000 Common Shares (representing approximately 8% of the issued and outstanding Common Shares) 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. (collectively, the "Underwriters"), at a price of $3.00 per Common Share (the "Issue Price") for gross proceeds of $60,000,000.
The Selling Shareholder has also agreed to sell, on a non-brokered private placement basis (the "Private Placement"), 5,000,000 Common Shares at the Issue Price to the Sprott Inc. 2011 Employee Profit Sharing Plan. Closing of the Private Placement is expected to occur by August 2014.
The Selling Shareholder has granted the Underwriters an over-allotment option to purchase up to an additional 3,000,000 Common 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 68,141,270 Common Shares, representing approximately 27.44% of the issued and outstanding Common Shares. 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.
The Selling Shareholder may increase or decrease its investment in the Corporation depending on market conditions or any other relevant factors.
This press release is issued pursuant to National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which also requires a report to be filed with regulatory authorities in each of the jurisdictions in which the Corporation is a reporting issuer containing information with respect to the foregoing matters (the "Early Warning Report"). A copy of the Early Warning Report will appear with the Corporation's documents on the System for Electronic Document Analysis and Retrieval and may also be obtained by contacting Steven Rostowsky, the Chief Financial Officer of the Corporation, at (416) 362-7172.
SOURCE: 2176423 Ontario Ltd.
For further information:
For further information, please contact the Selling Shareholder at Royal Bank Plaza, South Tower, 200 Bay Street, Suite 2700, Toronto, Ontario M5J 2J1.