TORONTO, ONTARIO--(Marketwired - Dec. 1, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sprott Asset Management LP ("Sprott") announces that Sprott Energy Opportunities Trust (the "Trust") has extended the deadline for the deposit of exchange eligible securities with respect to its initial public offering of trust units (the "Units"). The extension gives investors increased flexibility by allowing them to participate in the exchange option (the "Exchange Option") following yesterday's announcement from OPEC.
Prospective purchasers investing in the Trust under the Exchange Option are now permitted to deposit their exchange eligible securities prior to 5:00 p.m. (Toronto time) on December 7, 2016 in the manner described in the preliminary prospectus of the Trust dated November 2, 2016 (the "Preliminary Prospectus"). Such deposits must be made in the form of a book-entry deposit with TSX Trust Company, the Trust's agent for the exchange option, through CDS Clearing and Depository Services Inc. ("CDS"). Investment dealers, who will make these deposits through CDS, may have an earlier deadline for receiving instructions from investment advisors to deposit securities under the Exchange Option. The pricing period for the Exchange Option (the "Pricing Period") has also been revised and will be the period of five consecutive trading days ending on and including December 12, 2017. The Trust will issue a press release as soon as possible after the end of the Pricing Period announcing for each of the exchange eligible securities, among other things, the exchange ratio.
The Trust has filed and obtained a receipt for the Preliminary Prospectus from the securities regulatory authorities in each of the provinces and territories of Canada. The Units are being offered at a price per Unit of $10.00 with a minimum subscription of 100 Units ($1,000). Prospective purchasers may purchase Units either by: (i) cash payment; or (ii) the Exchange Option.
Investment Objective of the Trust
The investment objective of the Trust is to achieve long-term capital growth. The Trust has been created to invest in an actively managed portfolio (the "Portfolio") comprised primarily of equity and equity-related securities of companies that are involved directly or indirectly in the exploration, development, production and distribution of oil, gas, coal, or uranium and other related activities in the energy and resource sector.
Unique, Investor Friendly Structure
Sprott will pay certain of the fees of the offering. As a result, the net asset value per Unit immediately following the closing of the offering will be $9.875 less the expenses of the offering. In addition, Sprott currently intends that on or about October 17, 2018, the Trust will, subject to applicable law, which may require unitholder and/or regulatory approval, convert into an exchange traded mutual fund managed by Sprott or an affiliate (the "Converted Fund"). It is Sprott's intention that the Converted Fund will have a similar investment objective and investment strategy to that of the Trust. Enhanced liquidity and market support for the Units will also be provided through the Trust's market purchase program.
Sprott will act as manager and portfolio manager of the Trust. Portfolio manager Eric Nuttall will manage the Portfolio and will be supported by Sprott's broader team of experienced investment professionals.
The offering is being conducted by a syndicate of agents led by RBC Capital Markets, CIBC and TD Securities Inc. and including BMO Capital Markets, National Bank Financial Inc., Scotiabank, GMP Securities L.P. Manulife Securities Incorporated, Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc. and Sprott Private Wealth LP.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from one of the dealers noted above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
The Units have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States, and may not be offered or sold, directly or indirectly, in the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable securities laws of any state of the United States or in reliance on an exemption from such registration requirements. This news release does not constitute an offer to sell, or a solicitation of an offer to buy any of the securities set out herein in the United States.
About Sprott Asset Management LP
Sprott Asset Management LP is a leading independent asset management company headquartered in Toronto, Canada. The company manages the Sprott family of mutual funds, hedge funds, physical bullion funds and specialty products and is dedicated to achieving superior returns for its investors over the long term. The company also manages discretionary managed accounts. Please visit us at www.sprott.com to learn more about our investment professionals and their market insights.
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expects", "intends", "anticipates", "will" and similar expressions to the extent that they relate to the Trust. The forward-looking statements are not historical facts but reflect Sprott's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Sprott believes the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Neither the Trust nor Sprott undertake any obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.