Sprott Asset Management LP, a subsidiary of Sprott Inc., has announced an update to its at-the-market equity program for the Sprott Physical Silver Trust, allowing for the issuance of up to $1 billion in Trust units in the U.S. and Canada. The program is structured under an amended sales agreement and will involve sales at market prices on the NYSE Arca and the Toronto Stock Exchange. Proceeds from the program are intended to be used for acquiring physical silver bullion, aligning with the Trust’s investment objectives. The offering is detailed in prospectus supplements filed with U.S. and Canadian securities regulators.
The announcement of the updated program presents an opportunity for the Trust to potentially increase its capital significantly. The proceeds from the program are earmarked for acquiring physical silver bullion, which could enhance the Trust’s asset value and support its investment objectives. The sales agreement and program have received approval from the NYSE and TSX, ensuring compliance with trading regulations and boosting investor confidence.
However, the decision to update the program to issue up to $1 billion in Trust units may raise concerns about the need for additional capital, hinting at possible financial challenges or liquidity issues. The reliance on market conditions for pricing and the discretionary nature of unit sales could pose challenges in raising funds effectively. The presence of forward-looking statements and cautionary notes in the press release may also lead to investor apprehension regarding the Trust’s investments in physical silver bullion.
The Agents, including Cantor Fitzgerald & Co., Virtu Americas LLC, BMO Capital Markets Corp., and Canaccord Genuity LLC, will facilitate the sales of Units through the at-the-market issuances on the NYSE and TSX. The volume and timing of distributions under the program will be determined at the Trust’s discretion, with the intention to use the proceeds for acquiring physical silver bullion in line with the Trust’s objectives.
The offering under the ATM Program is being made in accordance with prospectus supplements dated May 2, 2025, filed with U.S. and Canadian regulatory authorities. The Trust’s continuous disclosure filings and risk factors associated with investing in the Trust are highlighted in the Offering Documents available on EDGAR and SEDAR+ websites.
Sprott Asset Management, known for its expertise in precious metals and critical materials investments, operates from multiple locations, including Toronto and New York. The Trust’s listing of Units on the NYSE and TSX has been approved, subject to applicable listing requirements. Investing in the Trust carries risks, and past performance is not indicative of future results.
Overall, the update to the at-the-market equity program by Sprott Asset Management signifies a strategic move to enhance the Trust’s investment capabilities and potentially capitalize on opportunities in the silver market. Investors are advised to review the Offering Documents and consult with financial advisors before making investment decisions.
🔗 Reddit Discussions
- Instead of drugs I bought silver bullion. Might have saved me.
- Consumers are so demoralized by inflation and high rates that they’ve given up on saving for the American Dream and are spending money instead, economist says
- Bitcoin was created to act as a placeholder for gold, Ethereum for silver investment inflows. And to prevent a run on banks. $3500 silver.