Sprott Inc. Receives Approval for New Share Buyback Program

Sprott Inc. Receives Approval for Share Buyback Program

In a recent announcement, Sprott Inc. (NYSE/TSX: SII) has garnered approval from the Toronto Stock Exchange for a new normal course issuer bid (NCIB). This initiative allows the company to repurchase its own common shares for cancellation, thereby providing greater liquidity to shareholders and aiming to better align the market price of their shares with the company's intrinsic value.

Understanding the Normal Course Issuer Bid

The NCIB permits Sprott to acquire up to 645,333 common shares, which represents about 2.5% of the 25,813,335 shares outstanding as of the end of February. The purchases will occur through various platforms including the Toronto Stock Exchange and potentially other trading systems. This strategic move reflects Sprott's commitment to enhancing shareholder value, particularly in light of their perception that the existing share prices do not fully capture the company’s business prospects.

Details of the Bid

Starting March 11 and extending until March 10, next year, the company plans to execute these transactions at prevailing market prices. During a period of six months leading up to the approval date, the average daily trading volume of Sprott's shares was recorded at 26,765. According to TSX rules, Sprott may repurchase up to 25% of that trading volume daily, which translates to approximately 6,691 shares, unless exceptions for larger block purchases apply.

Previous Share Buyback Success

Sprott's previous NCIB, running from March 4 of last year to March 3 of this year, saw the company authorized to repurchase up to 646,576 shares. Ultimately, they acquired 49,706 shares across various trading options, including the New York Stock Exchange. The purchases at the TSX and other platforms demonstrated an average price of C$59.08 per share, amounting to over C$2 million in cash consideration filed with the exchange. This experience has set a precedent for executing share buybacks efficiently, reflecting the management’s agility in capitalizing on market conditions.

Company Profile

Sprott is recognized as a leading global asset manager, specializing in precious metals and critical material investments. The firm's expertise extends across multiple strategies, distinguishing itself from generalist managers through profound knowledge and specific investment tactics. Their operations span significant markets with offices in major cities like Toronto, New York, and California, and they are proudly listed under the symbol (SII) on both the NYSE and TSX.

Engaging with Investors

As Sprott moves forward with its share buyback strategy, the company continues to foster open lines of communication with its investors. Glen Williams, the Managing Partner for Investor and Institutional Client Relations, is available to discuss any inquiries regarding the company’s initiatives. Interested parties can reach him at (416) 943-4394 or through email.

Frequently Asked Questions

1. What is a normal course issuer bid?

A normal course issuer bid allows companies to repurchase their own shares from the market to reduce the number of outstanding shares, thereby increasing shareholder value.

2. Why is Sprott repurchasing its shares?

Sprott aims to enhance shareholder value as they believe the current trading prices of shares do not reflect the company's business performance and future potential.

3. How many shares is Sprott planning to repurchase under the new NCIB?

Under the new NCIB, Sprott plans to repurchase up to 645,333 common shares throughout the duration of the program.

4. When will the share buybacks occur?

The repurchases will start on March 11 and continue until March 10 of the following year.

5. Who can investors contact for more information?

Investors seeking more information can contact Glen Williams, Managing Partner for Investor Relations, at (416) 943-4394 or via email.

About The Author

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