Sprott Asset Management revamps its equity program for gold and silver trust
- Sprott Asset Management has increased its equity program to issue up to $250 million in units.
- This update adds new sales agents to enhance market operations in the U.S. and Canada.
- The Trust aims to meet growing investor demand for physical gold and silver through this program.
In Canada, on December 6, 2024, Sprott Asset Management LP announced an enhancement to its at-the-market equity program for the Sprott Physical Gold and Silver Trust. The program will allow the Trust to issue up to US$250 million in units, aiming to cater to the growing investor demand for physical gold and silver bullion. The addition of new sales agents marked a strategic move to expand the Trust's market reach in both the United States and Canada, utilizing the capabilities of firms such as Cantor Fitzgerald, Virtu Americas, BMO Capital Markets, and Canaccord Genuity. This decision comes at a time when the pricing dynamics of gold and silver markets are fluctuating, indicating a potential increase in investor interest for commodities as a hedge against inflation and economic instability. The offering is conducted in accordance with the terms outlined in an amended and restated sales agreement which was also issued on December 6, 2024. Investors will acquire units through ongoing market sales on the NYSE Arca and the Toronto Stock Exchange, with prices varying based on market conditions. The Trust does not conduct promotion or solicitation of its units outside the defined trading landscapes. U.S. agents are restricted to marketplace operations within the U.S., furthering the separation between the Canadian and U.S. market strategies. Both the amended prospectus supplements for the United States and Canada were also filed to provide comprehensive guidance and updates to potential investors about the ongoing developments. Sprott Asset Management is noted for its specialized approach in managing investments within the precious metals sector. The forward-looking statements noted by the Trust highlight several assumptions connected to market demands and operational capabilities. With the updated programs, Sprott aims to remain competitive and responsive to investor demands while consistently enhancing transparency and compliance with regulatory requirements.