Sprott Asset Management LP Proposes Merger of Sprott Global Equity Fund into
Sprott All Cap Fund
TORONTO, Oct. 4 /CNW/ - Sprott Asset Management LP ("Sprott") today announced that it proposed to merge Sprott Global Equity Fund into Sprott All Cap Fund effective on or about November 30, 2010. Holders of units of each series of Sprott Global Equity Fund will receive units of the equivalent series of Sprott All Cap Fund, determined on a dollar-for-dollar basis.
The merger will be a material change for Sprott All Cap Fund, as the net asset value of Sprott All Cap Fund is smaller than the net asset value of Sprott Global Equity Fund. Accordingly, unitholders of each of these funds will be asked to approve the merger.
Sprott will seek unitholder and regulatory approval for the merger. Unitholder approval will be sought at special meetings to be held on or about November 25 2010. If the requisite approvals are obtained, it is expected that the merger will be implemented effective on or about November 30, 2010. As soon as practicable following the merger, Sprott Global Equity Fund will be wound up.
The Independent Review Committee of each of the funds will review the potential conflict of interest matters related to the proposed merger to provide its recommendation as to whether the proposed merger, if implemented, would achieve a fair and reasonable result for each of the funds.
Units of Sprott Global Equity Fund will cease to be available for sale, except for distribution of units under pre-authorized chequing plans. Unitholders of Sprott Global Equity Fund will have the right to redeem their units up to the close of business on the business day immediately preceding the effective date of the merger.
Following the merger, all pre-authorized chequing plans that had been established with respect to Sprott Global Equity Fund will be re-established with Sprott All Cap Fund, unless an investor advises Sprott otherwise. Investors may change or cancel any pre-authorized plan at any time.
In late October, a proxy voting package and information circular detailing the proposed merger will be sent to investors in Sprott Global Equity Fund and investors in Sprott All Cap Fund who are entitled to vote.
About Sprott Asset Management
Sprott Asset Management LP (www.sprott.com), together with its affiliates and related entities, provides management and investment advisory services to many entities, including the Sprott Mutual Funds, the Sprott Hedge Funds, the Sprott Offshore Funds, the Sprott discretionary managed accounts, and management of certain companies, such as Sprott Resource Corp.
For further information:
on Sprott Asset Management LP, please visit www.sprott.com; Investor contact information: (416) 362-7172 or (866) 299-9906 or [email protected]
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