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TORONTO, April 19, 2021 (GLOBE NEWSWIRE) — Sprott Inc. (“Sprott”) (TSX:SII) announces that it has filed an updated early warning report under applicable Canadian securities laws in respect of SRHI Inc. (“SRHI”). On April 16, 2021, SRHI closed a bought deal financing (the “Offering“). In connection with the Offering, SRHI issued a total of 20,930,000 units on a bought deal basis, at an offering price of C$0.55 per unit, which included 2,730,000 units issued pursuant to the exercise of the over-allotment option, in full, for gross proceeds of approximately $11.5 million. Each unit consists of one Class A common share in the capital of SRHI and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at a price of $0.70 for a period of 18 months following the closing of the Offering.
Immediately prior to giving effect to the Offering, Sprott, Term Oil Inc. (“Term Oil”), a corporation controlled by Arthur Richards (Rick) Rule IV, and Sprott Resource Consulting LP, Sprott Global Resource Investments Ltd. and Sprott Asset Management USA Inc., each an investment manager owned by Sprott (collectively, the “Sprott Managers”), collectively, beneficially owned or exercise direction and control over 1,857,176 common shares (the “Shares”) and 44,484,393 warrants (the “Warrants”) of SRHI (exercisable for Shares on a 20-for-1 basis), representing approximately 11.24% of the issued and outstanding Shares on a partially diluted basis assuming exercise of such Warrants.
Immediately after giving effect to the Offering, Sprott, Term Oil and the Sprott Managers, collectively, beneficially own or exercise direction and control over 1,857,176 Shares and 44,484,393 Warrants (exercisable for Shares on a 20-for-1 basis), representing approximately 7.13% of the issued and outstanding Shares on a partially diluted basis assuming exercise of such Warrants.
The Shares and Warrants were acquired for investment purposes. Sprott has a long-term view of the investment and may acquire additional securities of SRHI either on the open market or through private acquisitions or sell the securities either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. SRHI’s head office is at c/o Peterson McVicar LLP, 18 King St. East, Suite 902, Toronto, Ontario M5C 1C4.
A copy of Sprott’s early warning report will appear on SRHI’s profile on SEDAR at www.sedar.com and may also be obtained by calling Mr. Arthur Einav, General Counsel, at (416) 943-6448.
Sprott is a global asset manager and a leader in precious metal 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 (NYSE:SII) and on the Toronto Stock Exchange under the symbol (TSX:SII). For more information, please visit www.sprott.com.