Press Release

Sprott Announces Completion of Secondary Offering


TORONTO, June 29, 2017 (GLOBE NEWSWIRE) -- Sprott Inc. (“Sprott” or the “Corporation”) (TSX:SII) announces today the completion of the previously announced secondary offering (the “Secondary Offering”) of common shares of the Corporation (the “Shares”) held by 2176423 Ontario Ltd., (the “Selling Shareholder”), a company controlled and beneficially owned by Eric Sprott. An aggregate of 21,500,000 Shares were sold to a syndicate of underwriters led by TD Securities Inc. and including RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Canaccord Genuity Corp., CIBC World Markets Inc., GMP Securities L.P., Scotia Capital Inc., Sprott Private Wealth LP and Desjardins Securities Inc. (collectively, the “Underwriters”), at a price of $2.20 per Share (the “Issue Price”) for gross proceeds of $47,300,000, including the full exercise of the Underwriters’ over-allotment option to purchase additional Shares.

In addition to the Secondary Offering, the Selling Shareholder has sold, on a non-brokered private placement basis, 7,500,000 Shares at the Issue Price to the Sprott Inc. 2011 Employee Profit Sharing Plan Trust (the “Private Placement”). The Corporation has also purchased 5,000,000 Shares at the Issue Price from the Selling Shareholder for cancellation (the “Exempt Issuer Bid”). The Selling Shareholder’s aggregate consideration is $27,500,000 in connection with the Private Placement and Exempt Issuer Bid.

The Corporation did not receive any proceeds from the Secondary Offering or the Private Placement. All proceeds were paid to the Selling Shareholder. The Selling Shareholder intends to use a substantial portion of such proceeds (including those received in relation to the Exempt Issuer Bid), to invest in funds and securities, which may include those managed by the Corporation or its affiliates.

Prior to the Secondary Offering, the Mr. Sprott directly and indirectly through the Selling Shareholder, held 61,598,078 Shares, representing approximately 24.76% of the then outstanding Shares. After giving effect to the Secondary Offering, the Private Placement and the Exempt Issuer Bid, Mr. Sprott now holds directly and indirectly 27,598,078 Shares, representing approximately 11.32% of the outstanding Shares. The 34,000,000 Shares sold pursuant to the Secondary Offering, the Private Placement and Exempt Issuer Bid, represent approximately 13.95% of the currently outstanding shares. Mr. Sprott may acquire or sell additional securities of the Corporation either on the open market or through private acquisitions or dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of Mr. Sprott’s Early Warning Report will appear on the Corporation’s profile on SEDAR at www.sedar.com and may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J2).

Arthur Richards Rule IV acquired indirect ownership and control of 1,582,500 Shares, representing approximately 0.65% of the currently outstanding Shares, pursuant to the Secondary Offering for aggregate consideration of $3,481,500, as a result of which he now owns and or controls 26,121,265 Shares representing approximately 10.72% of the outstanding Shares. Prior to the Secondary Offering, Mr. Rule owned and/or controlled 24,538,765 Shares, representing approximately 9.86% of the then outstanding Shares. Mr. Rule acquired the Shares for investment purposes. Depending on market conditions, reformulation of plans and/or other relevant factors, Mr. Rule may, from time to time in the future, increase or decrease ownership or control over other securities of the Corporation through market transactions, private agreement or otherwise. A copy of Mr. Rule’s early warning report will appear on the Corporation’s profile on SEDAR at www.sedar.com and may also be obtained by calling 1-866-531-8746 (1910 Palomar Point Way, Suite 200, Carlsbad, California, 92008).

This news 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 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, the Corporation is dedicated to providing investors with best-in-class investment strategies that include Exchange Listed Products, Alternative Asset Management and Private Resource Investments. The Corporation also operates Merchant Banking and Brokerage businesses in both Canada and the US. Sprott is based in Toronto with offices in New York, Carlsbad and Vancouver and its common shares are listed on the Toronto Stock Exchange under the symbol (TSX:SII). For more information, please visit www.sprottinc.com.

Investor contact information:

Glen Williams
Director of Communications
(416) 943-4394
gwilliams@sprott.com 

Forward-Looking Information and Statements

Except for statements of historical fact contained herein, information in this press release may constitute “forward-looking information” within the meaning of Canadian securities laws. Other than statements of historical fact, all statements that involve various known and unknown risks, uncertainties and other factors are “forward-looking statements”, including, without limitation, with respect to the intended use by the Selling Shareholder of the net proceeds of the Secondary Offering, Private Placement and Exempt Issuer Bid. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these “forward-looking statements”. Except as otherwise required by applicable law, the Corporation expressly disclaims any intention or obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise.

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