TORONTO, Nov. 23, 2021– Sprott Asset Management LP (“Sprott Asset Management”), on behalf of the Sprott Physical Uranium Trust (TSX: U.UN) (TSX: U.U) (the “Trust” or “SPUT”), a closed-ended trust created to invest and hold substantially all of its assets in physical uranium, today announced that the Trust has filed and obtained a receipt from securities regulatory authorities in each of the provinces and territories of Canada for its second amended and restated short form base shelf prospectus (the “Second Amended and Restated Shelf Prospectus”) amending and restating its amended and restated short form base shelf prospectus dated September 9, 2021. The Second Amended and Restated Shelf Prospectus allows the Trust to issue up to US$3.5 billion of units of the Trust (“Units”) in Canada during the 25-month period that commenced on August 10, 2021.
The Trust has also updated its at-the-market equity program (the “ATM Program”) to issue up to an additional US$1.20 billion of Units pursuant to a prospectus supplement dated November 22, 2021 (the “Prospectus Supplement”, and together with the Second Amended and Restated Shelf Prospectus, the “Offering Documents”) to the Second Amended and Restated Shelf Prospectus. Copies of the Offering Documents are available at www.sedar.com. Distributions will no longer be made under previous ATM Program prospectus supplements, including the prospectus supplement dated September 13, 2021.
“We continue to experience strong investor demand for units of the Sprott Physical Uranium Trust on growing recognition that nuclear power generates reliable baseload energy while helping to meet de-carbonization goals,” said John Ciampaglia, CEO of Sprott Asset Management. “Since launching the At-the Market offering, SPUT has issued 87 million Units for gross proceeds of approximately US$987 million, which has resulted in the purchase of 21.5 million pounds of U 3 O 8 . SPUT now holds approximately 40 million pounds of physical uranium on behalf of our clients.”
Distributions under the ATM Program, if any, will be completed in accordance with the terms of an amended and restated sales agreement dated September 13, 2021, as amended on November 22, 2021 (the “Sales Agreement”) between Sprott Asset Management (as the manager of the Trust), the Trust, Cantor Fitzgerald Canada Corporation and Virtu ITG Canada Corp. (collectively, the “Agents”). The Sales Agreement is also available at www.sedar.com.
Sales of Units through the Agents, acting as agent, will be made through “at the market” issuances on the Toronto Stock Exchange (“TSX”) or other existing trading markets in Canada at the market price prevailing at the time of each sale, and, as a result, sale prices may vary. The Agents 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 uranium in accordance with the Trust’s objective and subject to the Trust’s investment and operating restrictions.
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 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 Asset Management and the Trust
Important information about the Trust, including its investment objectives and strategies, applicable management fees, and expenses, can be found on its website at www.sprott.com. 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.
Source: Yahoo Finance