Sprott Physical Platinum and Palladium Trust Updates Its “At-The-Market” Equity Program
September 09 2024 - 6:26PM
Sprott Asset Management LP (“Sprott Asset Management”), a
subsidiary of Sprott Inc., on behalf of the Sprott Physical
Platinum and Palladium Trust (NYSE: SPPP) (TSX: SPPP / SPPP.U) (the
“Trust”), a closed-ended mutual fund trust created to invest and
hold substantially all of its assets in physical platinum and
palladium bullion, today announced that it has updated its
at-the-market equity program to issue up to US$50 million of units
of the Trust (“Units”) in the United States and Canada.
Distributions under the at-the-market equity
programs in the United States and Canada (together, the “ATM
Program”) will be completed in accordance with the terms of an
amended and restated sales agreement (the “Sales Agreement”) dated
October 21, 2020, as amended on August 16, 2022 and as further
amended on September 9, 2024, between Sprott Asset Management (as
the manager of the Trust), the Trust, Cantor Fitzgerald & Co.
(“CF&Co”), Virtu Americas LLC (“Virtu” and together with
CF&Co, the “U.S. Agents”) and Virtu Canada Corp. (the “Canadian
Agent” and together with the U.S. Agents, the “Agents”). The Sales
Agreement is available on EDGAR at the SEC’s website at www.sec.gov
and the SEDAR+ website maintained by the Canadian Securities
Administrators at www.sedarplus.ca.
Sales of Units through the Agents, acting as
agent, will be made through “at the market” issuances on the NYSE
Arca (“NYSE”) and the Toronto Stock Exchange (“TSX”) or other
existing trading markets in the United States and Canada at the
market price prevailing at the time of each sale, and, as a result,
sale prices may vary. Neither U.S. Agent is registered as a dealer
in any Canadian jurisdiction and, accordingly, the U.S. Agents will
only sell Units on marketplaces in the United States and are not
permitted to and will not, directly or indirectly, advertise or
solicit offers to purchase any Units in Canada. The Canadian Agent
may only sell Units on marketplaces in Canada.
The volume and timing of distributions under the
ATM Program, if any, will be determined in the Trust's sole
discretion. The Trust intends to use the proceeds from the ATM
Program, if any, to acquire physical platinum and palladium bullion
in accordance with the Trust's objective and subject to the Trust's
investment and operating restrictions.
The offering under the ATM Program is being made
pursuant to a prospectus supplement dated September 9, 2024 (the
“U.S. Prospectus Supplement”) to the Trust’s U.S. base prospectus
(the “U.S. Base Prospectus”) included in its registration statement
on Form F-10 (the “Registration Statement”) (File No. 333-281996)
filed with the United States Securities and Exchange Commission
(the “SEC”) on September 6 2024, and pursuant to a prospectus
supplement dated September 9, 2024 (the “Prospectus Supplement”) to
the Trust's Canadian short form base shelf prospectus dated
September 6, 2024 (the “Base Shelf Prospectus” and together with
the Prospectus Supplement, the U.S. Prospectus Supplement, the U.S.
Base Prospectus and the Registration Statement, the “Offering
Documents”). The U.S. Prospectus Supplement, the U.S. Base
Prospectus and the Registration Statement are available on EDGAR at
the SEC's website at www.sec.gov, and the Prospectus Supplement and
the Base Shelf Prospectus are available on the SEDAR+ website
maintained by the Canadian Securities Administrators at
www.sedarplus.ca.
Before you invest, you should read the Offering
Documents and other documents that the Trust has filed for more
complete information about the Trust, the Sales Agreement and the
ATM Program.
Listing of the Units sold pursuant to the ATM
Program on the NYSE and the TSX will be subject to fulfilling all
applicable listing requirements.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy, nor shall there be
any sale of these securities in any jurisdiction in which an offer,
solicitation or sale would be unlawful prior to registration or
qualifications under the securities laws of any such
jurisdiction.
About Sprott and Sprott Asset
ManagementSprott Asset Management is a wholly-owned
subsidiary of Sprott and is the investment manager to the Trust.
Sprott is a global leader in precious metals and critical materials
investments. At Sprott, 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 Sprott’s common shares are
listed on the NYSE and the TSX under the symbol “SII”.
About the TrustImportant
information about the Trust, including its investment objectives
and strategies, applicable management fees, and expenses is
contained in the Trust’s annual information form for the year ended
December 31, 2023 (the “AIF”). Commissions, management fees, or
other charges and expenses may be associated with investing in the
Trust. The performance of the Trust is not guaranteed, its value
changes frequently and past performance is not an indication of
future results.
Caution Regarding Forward-Looking
StatementsThis press release contains forward-looking
statements within the meaning of applicable United States
securities laws and forward-looking information within the meaning
of Canadian securities laws (collectively, “forward-looking
statements”). Forward-looking statements in this press release
include, without limitation, investor demands for Units, statements
regarding the ATM Program, including the intended use of proceeds
from the sale of Units, any sale of Units and the timing and
ability of the Trust to obtain all necessary approvals in
connection with a sale of Units. With respect to the
forward-looking statements contained in this press release, the
Trust has made numerous assumptions regarding, among other things,
the platinum and palladium market. While the Trust considers these
assumptions to be reasonable, these assumptions are inherently
subject to significant business, economic, competitive, market and
social uncertainties and contingencies. Additionally, there are
known and unknown risk factors that could cause the Trust's actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements contained in this press
release. A discussion of risks and uncertainties facing the Trust
appears in the Offering Documents, as updated by the Trust's
continuous disclosure filings, which are available at www.sec.gov
and www.sedarplus.ca. All forward-looking statements herein are
qualified in their entirety by this cautionary statement, and the
Trust disclaims any obligation to revise or update any such
forward-looking statements or to publicly announce the result of
any revisions to any of the forward-looking statements contained
herein to reflect future results, events or developments, except as
required by law.
For more information:
Glen WilliamsManaging DirectorInvestor and
Institutional Client RelationsDirect:
416-943-4394gwilliams@sprott.com
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