Uranium Participation Corporation and Sprott Asset Management Announce Closing Date for Arrangement
July 15 2021 - 12:10PM
Uranium Participation Corporation (TSX: U) (“UPC”) and Sprott Asset
Management LP (“Sprott Asset Management”), announced today that,
following the satisfaction of the conditions to closing, UPC has
filed articles of arrangement under the Business Corporations Act
(Ontario) and a certificate of arrangement was issued in connection
with the previously announced plan of arrangement involving UPC,
Sprott Asset Management, the Sprott Physical Uranium Trust, and
2834819 Ontario Inc. (the “Transaction”), which will close and be
effective at 12:01 a.m. (Toronto time) on July 19, 2021.
With the closing of the Transaction on July 19,
2021, trading of the units of the newly-established Sprott Physical
Uranium Trust is expected to commence on the Toronto Stock Exchange
under the symbol “U.UN” in Canadian dollars and “U.U” in U.S.
dollars on such date. Trading of the common shares of UPC on the
Toronto Stock Exchange will be suspended prior to such time.
The creation and issuance of exchangeable shares
of 2834819 Ontario Inc. pursuant to the Transaction was subject to
elections in respect of at least C$50 million of UPC common shares
being received by 5:00 p.m. (Toronto time) on July 8, 2021.
Sufficient elections were not received and, as a result, only units
of the Sprott Physical Uranium Trust, and no exchangeable shares,
will be issued pursuant to the Transaction.
About Uranium Participation
Corporation
Uranium Participation Corporation is a company
that invests substantially all of its assets in uranium oxide in
concentrates (“U3O8”) and uranium hexafluoride (“UF6”)
(collectively "uranium"), with the primary investment objective of
achieving appreciation in the value of its uranium holdings through
increases in the uranium price. UPC provides investors with a
unique opportunity to gain exposure to the price of uranium without
the resource or project risk associated with investing in a
traditional mining company. Additional information about Uranium
Participation Corporation is available on SEDAR
at www.sedar.com and on UPC’s website at
www.uraniumparticipation.com.
About Sprott
Sprott is a global leader in precious metal and
real asset investments. With offices in Toronto, New York and
London, Sprott is dedicated to providing investors with specialized
investment strategies that include Exchange Listed Products,
Managed Equities, Lending and Brokerage. Sprott’s common shares are
listed on the New York Stock Exchange under the symbol SII and
Toronto Stock Exchange under the symbol SII. For more information,
please visit www.sprott.com.
Caution Regarding Forward-Looking
Information
This press release contains certain
forward-looking statements and forward-looking information that are
based on UPC's current internal expectations, estimates,
projections, assumptions and beliefs. Forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "may", "will", "expect", "intent", "estimate",
"anticipate", "plan", "should", "believe" or "continue" or the
negative thereof or variations thereon or similar terminology and
include statements with respect to: the Transaction and the
described elements thereof.
By their very nature, forward-looking statements
involve numerous factors, assumptions and estimates. A variety of
factors, many of which are beyond the control of UPC, may cause
actual results to differ materially from the expectations expressed
in the forward-looking statement. There is a risk that the
currently anticipated benefits of a completed Transaction may not
be achieved. For a description of the principal risks of the
Transaction, see the management information circular of UPC for the
Transaction dated June 7, 2021 (“the Circular”). For a description
of the principal risks of UPC, see "Risk Factors" in UPC's Annual
Information Form dated May 3, 2021 for the fiscal year ended
February 28, 2021 (“AIF”). Copies of the AIF and Circular are
available at www.sedar.com.
These and other factors should be considered
carefully, and readers are cautioned not to place undue reliance on
these forward-looking statements. Although management reviews the
reasonableness of its assumptions and estimates, unusual and
unanticipated events may occur which render them inaccurate. Under
such circumstances, future performance may differ materially from
those expressed or implied by the forward-looking statements.
Except where required under applicable securities legislation, UPC
does not undertake to update any forward-looking information
statement.
Contact:
For UPC:
David Cates, President & Chief Executive
Officer, (416) 979-1991 Ext. 362Mac McDonald, Chief Financial
Officer, (416) 979-1991 Ext. 242
For Sprott:
Glen WilliamsManaging DirectorInvestor and
Institutional Client Relations; Head of Corporate
CommunicationsDirect: 416-943-4394gwilliams@sprott.com
or
Dan Gagnier / Jeff MathewsGagnier
Communications646-569-5897sprott@gagnierfc.com