The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Sprott Completes acquisition of Flatiron Capital Management

Thursday, August 02, 2012

Sprott Completes acquisition of Flatiron Capital Management07:00 EDT Thursday, August 02, 2012TORONTO, Aug. 2, 2012 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott") today announced it has completed the acquisition of Flatiron Capital Management Partners ("Flatiron"), an alternative investment manager specializing in market-neutral strategies. As at the date hereof, Flatiron has approximately $260 million in assets under management ("AUM")."We are pleased to further enhance our investment capabilities with the addition of one of Canada's leading convertible bond arbitrage teams," said Peter Grosskopf, Chief Executive Officer of Sprott. "The acquisition of Flatiron provides us with new investment capabilities and allows us to introduce specialty income strategies designed to deliver consistent returns to investors, while also providing them with important downside protection."Sprott recently launched the Sprott Flatiron Yield Trust, an investment vehicle designed to generate positive monthly returns by focusing primarily on Canadian convertible arbitrage.About Flatiron Capital Management PartnersFlatiron is an Exempt Market Dealer, Portfolio Manager and Investment Fund Manager registered with the Ontario Securities Commission. Flatiron manages funds for individuals and institutions.About Sprott Inc.Sprott Inc. is a leading independent asset manager dedicated to achieving superior returns for its clients over the long term. The Company currently operates through four business units: Sprott Asset Management LP, Sprott Private Wealth LP, Sprott Consulting LP, and Sprott U.S. Holdings Inc.  Sprott Asset Management is the investment manager of the Sprott family of mutual funds and hedge funds and discretionary managed accounts; Sprott Private Wealth provides wealth management services to high net worth individuals; and Sprott Consulting provides management, administrative and consulting services to other companies. Sprott Inc. is headquartered in Toronto, Canada, and its common shares are listed on the Toronto Stock Exchange under the symbol "SII". For more information on Sprott Inc., please visit www.sprottinc.com.Forward-Looking Statements This release contains "forward-looking statements" which reflect the current expectations of Sprott Inc.  These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements in this press release include, but are not limited to, statements with respect to the benefits from the transaction.  Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions, including with respect to the anticipated benefits from the transaction.  Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including, without limitation, those listed under the heading "Risk Factors" in Sprott's annual information form dated March 27, 2012. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release. Although the forward-looking statements contained in this release are based upon what Sprott believes to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and Sprott does not assume any obligation to update or revise them to reflect new events or circumstances, except as required by law.Sprott Hedge Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about the Funds, including their investment objective and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Please contact your own personal advisor on your particular circumstance. This communication does not constitute an offer to sell or solicitation to purchase securities of the Fund. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.SOURCE: Sprott Inc.For further information: Glen Williams Director of Communications Sprott Inc. (416) 943-4394 gwilliams@sprott.com