Sprott Physical Copper Trust Announces Filing of Final Prospectus for Initial Public Offering
May 31 2024 - 4:18PM
Sprott Asset Management LP (“
Sprott Asset
Management”), on behalf of Sprott Physical Copper Trust
(the “
Trust”), announced that on May 31, 2024, a
final prospectus for the Trust was filed and receipted by the
securities regulatory authorities of all the Canadian provinces and
territories, and that it has entered into an underwriting agreement
for its initial public offering of 10,000,000 transferable units
(the “
Units”) of the Trust at a price of US$10.00
per Unit (the “
Offering”). The Offering will
generate gross proceeds of $100,000,000.
The Trust has also received conditional approval
for the listing of the Units on the Toronto Stock Exchange
(“TSX”) under the symbols “COP.UN” and “COP.U”.
Listing is subject to the Trust fulfilling all of the requirements
of the TSX. It is anticipated that trading in the Units on the
Toronto Stock Exchange will commence upon closing of the Offering.
Closing of the offering is scheduled for June 6, 2024, subject to
customary closing conditions.
The Trust is a closed-end trust established to
invest and hold substantially all of its assets in physical copper
metal (“Copper”). The net proceeds of the Offering
will be used to purchase Copper.
The Trust’s investment objectives are to provide
a secure, convenient and exchange-traded investment alternative for
investors interested in holding Copper without the inconvenience
that is typical of a direct investment in Copper. The Trust does
not anticipate making regular cash distributions to holders of the
Units.
Canaccord Genuity Corp., BMO Nesbitt Burns Inc.
and Cantor Fitzgerald Canada Corporation are acting as joint
bookrunners for the Offering. RBC Dominion Securities Inc. and TD
Securities Inc. are also acting as underwriters for the
Offering.
WMC Energy B.V. is acting as technical advisor
to Sprott Asset Management and will arrange all procurement and
handling of Copper.
The Trust has granted to the underwriters an
over-allotment option, exercisable for a period of 30 days from the
date of closing of the Offering, to cover over-allotments, if any.
If such option is exercised in full, gross proceeds of the Offering
will be $115,000,000.
About Sprott Asset Management and the
Trust
Sprott Asset Management, a subsidiary of Sprott
Inc. (“Sprott”) (NYSE/TSX: SII), is the investment manager to the
Trust. Sprott is a global leader in precious metal and critical
materials investments. We are specialists. Our in-depth knowledge,
experience and relationships separate us from the generalists. Our
investment strategies include Exchange Listed Products, Managed
Equities and Private Strategies. Sprott has offices in Toronto, New
York, Connecticut and California and the company’s common shares
are listed on the New York Stock Exchange and the Toronto Stock
Exchange under the symbol (SII). For more information, please
visit www.sprott.com.
Contact:Glen Williams Managing
PartnerInvestor and Institutional Client Relations Direct:
416-943-4394gwilliams@sprott.com
This Offering is only made by
prospectus. The prospectus contains important detailed information
relating to the securities being offered and has been filed with
the securities commissions or similar authorities in each of the
provinces and territories of Canada. Copies of the prospectus may
be obtained from any one of the underwriters noted above. Investors
should read the prospectus before making an investment
decision.
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
Trust’s securities referred to herein in the United
States.
This is not an offer to sell these securities
and not a solicitation of an offer to buy these securities in any
state where the offer or sale is not permitted and should be
accompanied by the final prospectus. Investors should carefully
consider the Trust’s investment objectives, risks, charges and
expenses before investing. The final prospectus, which contains
this and other information about the Trust, should be read
carefully before investing.
You could lose some or all of your investment.
For a summary of the risks of an investment in the Trust, please
see the “RISK FACTORS” section of the final
prospectus. Consult your financial advisor before investing.
This material may contain certain statements
which constitute “forward-looking information”. Forward-looking
information includes, among other things, projections, estimates,
and information about possible or future results related to the
Trust, market, or regulatory developments. The views expressed
herein are not guarantees of future performance or economic results
and involve certain risks, uncertainties, and assumptions that
could cause actual outcomes and results to differ materially from
the views expressed herein. The views expressed herein are subject
to change at any time based upon economic, market, or other
conditions and the Trust undertakes no obligation to update the
views expressed herein.
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