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Sprott (T.SII) founder Eric Sprott reducing stake in asset management firm

Stockhouse Editorial
5 Comments| June 25, 2014


Legendary precious metals investor Eric Sprott, is reducing his stake in Sprott Inc. (TSX: T.SII, Stock Forum), the asset management firm he launched nearly three decades ago.

Sprott said Tuesday, he is selling 25 million shares in Sprott at $3 a share.

On Wednesday, the stock was down 8% to $3.01 leaving a market cap of $747.5 million, based on 248.3 million shares outstanding. The 52-week range is $3.85 and $2.21.

Sprott said that 2176423 Ontario Ltd., a company controlled by Sprott has struck a deal with a syndicate of underwriters co-led by TD Securities Inc. and Scotiabank.

Under the deal, the underwriters will purchase from the selling shareholder 20 million common shares of Sprott at $3 per share, generating $60 million in gross proceeds, the company said in a press release.

The underwriters have been granted an over-allotment option to purchase an additional three million shares at the issue price. That option is exercisable for a period of 30 days after the date that the offering closes.

Concurrent with the offering, Eric Sprott intends to enter into an agreement to sell, on a non-brokered private placement basis five million shares at the issue price to the Sprott Inc. 2011 Employee Profit Sharing Plant Trust.

Sprott Inc. will not reveive any proceeds from the offering or private placement. All proceeds will be payable to Eric Sprott, who intends to use the net proceeds to invest in funds and securities managed by Sprott or its affiliates, with a focus on precious metal-related investments.

Following completion of the offering and the private placement, Sprott will retain a 25.4% stake in Sprott Inc. and 24.2% if the over-allotment option is exercised in full.


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frankstevens17
I guess Sprott is finally ready to admit he doesn't have a clue what's happening in the natural resource market so it's time to bail. Unfortunately that cornball cost a lot of people a lot of money but I'm not one of them because I never believed his BS.
2 stars
June 26, 2014
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MOJOJONO
Remember when... May 2, 2011 http://www.theglobeandmail.com/report-on-business/streetwise/eric-sprott-sells-his-silver-trust-units/article614037/ April 12, 2013 http://www.theglobeandmail.com/globe-investor/inside-the-market/eric-sprott-sells-big-chunk-of-silver-trust-units/article11157109/
2 stars
June 25, 2014
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goldenfitness
So Precious Metals, Gold? Is heading north?
4 stars
June 25, 2014
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uranium
3 stars
June 25, 2014
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arh0070
he was completely wrong in all his forecasts for the general stock market ,the gold markets and precious metals stocks ,peak oil hypothesis ,he should give the money back to his shareholders who suffered from his terrible advice
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June 26, 2014
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