Sprott Completes Acquisition of Tocqueville Gold Strategies and Provides Preliminary AUM Update
January 17 2020 - 5:21PM
Sprott Inc. (TSX: SII) (“Sprott”) announced today that it has
successfully completed its previously announced acquisition by
Sprott Asset Management LP (“SAM”) of Tocqueville Asset Management
LP (“Tocqueville”) gold strategies for total consideration of up to
US$50 million, comprised of a payment at closing of US$12.5 million
in cash and US$2.5 million in Sprott common shares based on a
five-day volume weighted adjusted price. Tocqueville is also
eligible to receive contingent consideration valued at up to an
additional US$30 million in cash and Sprott common shares valued at
US$5 million, subject to the achievement of certain financial
performance conditions over the two years following closing. This
transaction adds approximately C$2.3 billion (US$1.8 billion) to
Sprott’s total Assets Under Management (“AUM”).
“The completion of this acquisition is a
significant milestone for Sprott and the result of months of
integration and planning,” said Whitney George, President of
Sprott. “With the addition of John Hathaway and Douglas Groh, we
believe we now have the world’s leading gold investment team in
terms of sector experience, depth and technical expertise.”
“We are delighted to join Sprott, a
globally-recognized organization with a long history in precious
metals investments,” said John Hathaway, Senior Portfolio Manager
of Sprott. “We believe that combining our teams will enhance our
investment capabilities and sector expertise as we continue to seek
out compelling long-term opportunities for our clients.”
“This acquisition adds meaningful scale to our
managed equities business and complements our other resource
investment strategies at a time when gold is becoming an
increasingly important component of investors’ portfolios,” said
Peter Grosskopf, CEO of Sprott. “Sprott has now built a global full
service platform to offer a broad spectrum of precious metal
investment strategies, ranging from bullion to private equity, to
investors in North America, Europe, the United Kingdom and
Asia.”
Preliminary AUM UpdateSprott
estimates that its AUM as of January 17, 2020, is approximately
C$14.8 billion (US$11.3 billion) (unaudited), an increase of
approximately 40% from December 31, 2018. In addition to the
acquisition of the Tocqueville gold strategies in Sprott’s Managed
Equities segment, the increase is largely attributable to market
value increases in Sprott’s Exchange Listed Products segment and
new capital raised in the Company’s Lending segment.
Fund Reorganization and Name
ChangesEffective January 17, 2020, both classes of the
Tocqueville Gold Fund (TGLDX and TGLIX) have been successfully
reorganized into classes of the Sprott Gold Equity Fund (SGDLX and
SGDIX). The Falcon Gold Equity UCITS Fund has been renamed the
Sprott Falcon Gold Equity UCITS Fund and Sprott will also
sub-advise the Falcon Gold Equity Fund.
About SprottSprott 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, Sprott is dedicated to providing investors with
specialized investment strategies that include Exchange Listed
Products, Lending, Managed Equities and Brokerage. Sprott’s common
shares are listed on the Toronto Stock Exchange under the symbol
(TSX:SII). For more information, please visit www.sprott.com.
Investors should carefully consider investment
objectives, risks, charges and expenses. This and other important
information is contained in the fund prospectus which should be
considered carefully before investing. Call 888.622.1813 to
obtain the prospectus. Sprott Global Resource Investments Ltd. is
the Fund’s distributor.
Forward Looking StatementsThis
press release contains statements that constitute “forward-looking
information” (collectively, “forward-looking statements”) within
the meaning of applicable securities laws. Often, but not always,
forward-looking statements can be identified by the use of words
such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “believes”
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved.
In particular, but without limiting the forgoing, this press
release contains forward-looking statements pertaining to the
acquisition of the Tocqueville gold strategies asset management
business, the AUM added as a result of the transaction, the impact
of certain portfolio managers joining SAM and the impact of the
transaction on Sprott’s business and strategies. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Sprott to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Such risks and uncertainties include,
without limitation, risk and uncertainties that are inherent in the
nature of the transaction, including: failure to realize
anticipated synergies; risks regarding integration; incorrect
assessments of the values of the acquired assets and revenue growth
of Sprott. As a result of the foregoing, readers should not place
undue reliance on the forward-looking statements contained in this
press release concerning the completion of the transaction or the
timing thereof.
Forward-looking statements contained herein are
made as of the date of this press release and Sprott disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or results or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. The
Company undertakes no obligation to update forward-looking
statements if circumstances, management’s estimates or opinions
should change, except as required by securities legislation.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements.
Investor contact
information:
Glen WilliamsManaging Director Investor
Relations & Corporate Communications(416)
943-4394gwilliams@sprott.com
Media contact information:
Dan Gagnier / Jeff Mathews Gagnier
Communications (646) 569-5897sprott@gagnierfc.com
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