TORONTO, June 6, 2012 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott") today announced the signing of a letter of intent (the "LOI")
reflecting an agreement in principle to acquire Flatiron Capital
Management Partners ("Flatiron"), an alternative investment manager
specializing in market-neutral strategies. As at the date hereof,
Flatiron has approximately $275 million in assets under management
The transaction is subject to, among other things, satisfactory results
of due diligence investigations of Flatiron and the negotiation of
definitive agreements. The transaction is an arm's length transaction
and is subject to the approval of all applicable regulatory
authorities, including the Toronto Stock Exchange, as well as other
third parties, as necessary. In addition, the transaction remains
subject to approval by Sprott's board of directors. The parties will seek to close the transaction by the middle of the
third quarter of 2012.
"We are committed to broadening our investment capabilities by hiring
best-in-class investment managers and this transaction brings us one of
Canada's leading convertible bond arbitrage teams," said Peter
Grosskopf, Chief Executive Officer of Sprott. "We believe the Flatiron
team and strategies are uniquely qualified to perform well during the
volatile markets which we expect will persist for some time. Flatiron
will provide an ideal complement to our growing suite of specialty
fixed-income funds, which upon completion of this transaction, will
represent more than $800 million in AUM."
"We are excited to become part of the Sprott organization. Sprott is an
industry leader with an investment philosophy and outlook that aligns
closely with ours," said Steve Duenkler, Co-Founder of Flatiron.
"We look forward to working with the team at Sprott to develop new
products and introduce our approach to new investors," added Parm
Kalirai, Co-Founder of Flatiron.
Since inception in January 2000, the Flatiron Market Neutral LP and its
predecessor managed account, the "Flatiron Fund", managed by Mr.
Duenkler and Mr. Kalirai, have generated average annual returns of
9.54%* net of fees and expenses, compared to 5.4%* for the S&P/TSX
Composite Index over the same period. The investment strategy of the
Flatiron team is designed to provide stable and absolute returns, as
well as low volatility through all phases of the economic cycle.
*as of April 30, 2012
About Flatiron Capital Management Partners
Flatiron is an Exempt Market Dealer, Portfolio Manager and Investment
Fund Manager registered with the Ontario Securities Commission.
Flatiron manages funds for individuals and institutions.
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 business units: Sprott Asset
Management LP, Sprott Private Wealth LP, Sprott Consulting LP, 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 provides management, administrative and consulting services
to other companies, including Sprott Resource Corp. (TSX: SCP), Sprott
Resource Lending Corp. (TSX: SIL) (NYSE AMEX: SILU) and Sprott Power
Corp. (TSX: SPZ). Sprott U.S. Holdings Inc. includes Sprott Asset
Management USA Inc., Resource Capital Investments Inc. and Global
Resource Investments Ltd. Sprott Inc. is headquartered in Toronto,
Canada, and its common shares are listed on the Toronto Stock Exchange
under the symbol "SII". For more information on Sprott Inc., please
Forward-Looking Statements and Past Performance Information
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,
statements with respect to the negotiation of the definitive agreements
for the transaction, the terms of such definitive agreements, the
closing of the transaction and the anticipated benefits from the
transaction. Forward-looking statements involve significant known and
unknown risks, uncertainties and assumptions, including with respect to
the anticipated completion of the negotiation of the definitive
agreements, the closing of the transaction, the timing and receipt of
all applicable regulatory approvals and third party consents, the
anticipated benefits from the transaction and the satisfaction of other
conditions to the completion of 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 27, 2012 as well as that
the closing of the transaction could be delayed if the necessary
regulatory approvals and third party consents are not obtained on the
timelines planned or the transaction may not be completed at all if
these approvals are not obtained or any other conditions to closing are
not satisfied. 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.
This release contains past performance information relating to
investment accounts that have used Flatiron's market neutral strategy.
Past performance is not indicative of future results and there can be
no assurance that the results achieved for past investments will be
achieved in the future.
SOURCE Sprott Inc.
For further information:
Director of Communications