Sprott Inc. Announces Renewal of Normal Course Issuer Bid

Rhea-AI Summary

Sprott Inc. (SII) announced approval from the Toronto Stock Exchange for a normal course issuer bid (NCIB) to repurchase up to 642,576 common shares, approximately 2.5% of its outstanding shares. The buyback, set to begin on March 3, 2021, and end on March 2, 2022, aims to enhance shareholder liquidity, as Sprott believes its shares are undervalued compared to its business prospects. In the prior NCIB, Sprott repurchased 186,403 shares at an average price of C$27.00, totaling C$5,034,300.30.

Positive

• Sprott is initiating a buyback program for 642,576 shares, showing confidence in its valuation.
• The previous NCIB successfully repurchased 186,403 shares, indicating effective capital allocation.

Negative

• No significant negative financial metrics reported.

TORONTO, March 01, 2021 (GLOBE NEWSWIRE) -- Sprott Inc. (“Sprott” or the “Company”) (NYSE/TSX: SII) announced that the Toronto Stock Exchange (“TSX”) has approved the notice of its intention to make a normal course issuer bid ("NCIB"). Pursuant to the terms of the NCIB, Sprott may purchase its own common shares for cancellation through the facilities of the TSX, alternative Canadian trading systems and/or the New York Stock Exchange, in each case in accordance with the applicable requirements, and as otherwise permitted under applicable securities laws. The maximum number of common shares which may be purchased by Sprott during the NCIB will not exceed 642,576 common shares being approximately 2.5% of 25,703,074 (representing the number of issued and outstanding common shares as of February 18, 2021). The average daily trading volume (the “ADTV”) of the common shares on the TSX for the six-month period ended January 31, 2021 was 78,293. Under the rules of the TSX, Sprott is entitled to repurchase during the same trading day on the TSX up to 25% of the ADTV of the common shares, being 19,573 common shares, except where such purchases are made in accordance with the "block purchase" exemption under applicable TSX policy. Sprott will effect purchases at varying times commencing on March 3, 2021 and ending on March 2, 2022.

In addition to providing shareholders liquidity, Sprott believes that the common shares have been trading in a price range which does not adequately reflect the value of such shares in relation to Sprott’s business and its future prospects.

Under its prior NCIB that commenced on November 15, 2019 and terminated on November 14, 2020, Sprott previously sought and received approval from the TSX to repurchase up to 634,511 common shares (on a post-share consolidation basis). During and pursuant to its previously authorized NCIB, Sprott purchased an aggregate of 186,403 common shares (on a post-share consolidation basis) through the facilities of the TSX and alternative Canadian trading systems at a weighted-average price of C$27.00 per common share (on a post-share consolidation basis), for total cash consideration of C$5,034,300.30.

About Sprott
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.

Forward Looking Statements
This press release contains statements that constitute “forward-looking information” and “forward-looking statements” (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”, “estimates”, “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.

The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Forward-looking statements in this press release include statements about the value of Sprott’s common shares and its business and future prospects.

Although the Company believes the forward-looking statements in this press release are reasonable, it can give no assurance that the expectations and assumptions in such statements will prove to be correct. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to the other risks described in the Company’s filings with Canadian and U.S. securities regulatory authorities. As a result, readers should not place undue reliance on the forward-looking statements contained in this press release.

Investor contact information:

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

FAQ

What is Sprott Inc.'s recent normal course issuer bid (NCIB) announcement?

Sprott Inc. announced an NCIB to repurchase up to 642,576 common shares, about 2.5% of its outstanding shares.

What is the purpose of Sprott's NCIB?

The NCIB aims to provide liquidity to shareholders and address the perceived undervaluation of Sprott's shares.

When does Sprott's NCIB start and end?

The NCIB will commence on March 3, 2021, and conclude on March 2, 2022.

How many shares did Sprott repurchase in the previous NCIB?

In the previous NCIB, Sprott repurchased 186,403 shares at an average price of C$27.00.

What percentage of outstanding shares can Sprott repurchase under the new NCIB?

Sprott can repurchase approximately 2.5% of its outstanding shares under the new NCIB.