Mr. Glen Williams reports
SPROTT ASSET MANAGEMENT ENTERS AGREEMENT WITH NORTH SHORE INDICES, INC. TO ACQUIRE LICENSING RIGHTS TO THE INDEX TRACKED BY THE NORTH SHORE GLOBAL URANIUM MINING ETF
Sprott Asset Management LP, a wholly owned subsidiary of Sprott Inc., has entered into a definitive agreement with North Shore Indices Inc. to acquire an exclusive licence to use the North Shore Global Uranium Mining Index, the performance of which the North Shore Global Uranium Mining ETF (URNM), a series of Exchange Traded Concepts Trust, seeks to track.
In connection with the agreement and subject to the approval of a reorganization by both the board of trustees of the trust and shareholders of URNM, it is anticipated that URNM would be reorganized into a newly created series of the Sprott Funds Trust, the Sprott Uranium Miners ETF, which series will be advised by Sprott Asset Management and subadvised by ALPS Advisors Inc. Assuming the transaction is approved by the board of trustees of the trust and the shareholders of URNM, the reorganization is expected to close in the first quarter of 2022.
"We believe we are in the early stages of a uranium bull market, and URNM is a perfect complement to the Sprott Physical Uranium Trust (SPUT), which is the world's largest physical uranium fund," said John Ciampaglia, chief executive officer of Sprott Asset Management. "URNM is the only [United States]-listed pure play uranium equities [exchange-traded fund], and we look forward to providing investors with two compelling options to invest in the sector."
Fund reorganization information
Pursuant to an agreement and plan of reorganization, upon completion of the proposed fund reorganization, each shareholder of URNM would become a shareholder of the Sprott Uranium Miners ETF. The Sprott Uranium Miners' investment objective, principal investment strategies, and fundamental and non-fundamental policies will be substantially similar to those of URNM. A definitive registration statement containing a proxy statement/prospectus, as well as the agreement and plan of reorganization, related to soliciting approval by the shareholders of URNM, is expected to be filed with the Securities and Exchange Commission (SEC) in December, 2021, or sooner.
A registration statement for the Sprott Uranium Miners has been filed with the SEC but is not yet effective. Information contained herein is subject to completion or amendment. Fund securities may not be sold, nor may offers to buy be accepted prior to the time the registration statement becomes effective.
Investors and shareholders of URNM are urged to read the proxy statement/prospectus filed with the SEC carefully and in its entirety when it becomes available because it will contain important information about the fund reorganization. The proxy statement/prospectus will not constitute an offer to buy or sell securities in any jurisdiction where such offer or sale is not permitted. Shareholders may obtain a free copy of the proxy statement/prospectus (when it becomes available) at the SEC's website.
Investors should consider a fund's investment objectives, risks, charges and expenses before investing. The prospectus and the summary prospectus contain this and other information about the fund. To obtain a prospectus or a summary prospectus of a series of the Sprott Funds Trust, contact your financial adviser or download and/or request one at the Sprott website, or call Sprott Asset Management at 888-622-1813. The prospectus and summary prospectus for URNM can be obtained from your financial adviser by calling 877-URNM-ETF (876-6383). Please read the prospectus and/or summary prospectus carefully before investing. Past performance is no guarantee of future results.
URNM is advised by Exchange Traded Concepts LLC (ETC) and distributed by SEI Investments Distribution Co., an FINRA (Financial Industry Regulatory Authority) member, which is not affiliated with ETC, North Shore Indices Inc. or any affiliates. Investments in URNM are not insured by the FDIC (Federal Deposit Insurance Corp.) or any other governmental agency, and are subject to risks, including a possible loss of the principal amount invested. ALPS Distributors Inc. will be the distributor for the Sprott Uranium Miners and is a registered broker dealer and an FINRA member.
Seward & Kissel LLP is serving as legal counsel to Sprott Asset Management. Thompson Hine LLP is serving as legal counsel to the Sprott Uranium Miners.
About Sprott Inc.
Sprott is a global leader in precious metal and real asset investments. With offices in Toronto, New York and London, Sprott is dedicated to providing investors with specialized investment strategies that include exchange-listed products, managed equities, lending and brokerage. Sprott's common shares are listed on the New York Stock Exchange under the symbol SII and on the Toronto Stock Exchange under the symbol SII.
About Exchange Traded Concepts LLC
Exchange Traded Concepts is an SEC-registered investment adviser, specializing in private label ETFs. ETC helps clients launch passive and active ETFs under the Investment Company Act of 1940. ETC provides an efficient and cost-effective method to bring exchange-traded funds to market with the operational and regulatory experience necessary. ETC currently manages, advises and subadvises 51 ETFs with more than $8-billion in assets under management, and provides a full-service turnkey platform to launch and manage ETFs.
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