Eric Sprott to sell 25 million shares in money management firm Sprott Inc

Eric Sprott, a former analyst who formed a brokerage firm before setting up his own money management firm two decades back and who is generally regarded as one of the country’s legendary precious metals’ investors, is reducing his stake in the company. He announced Tuesday he was selling at least 25 million shares in Sprott Inc. at $3 a share.

Of the 25 million shares being sold, 20 million come from a Sprott-controlled company and will be sold to the public via a bought deal. The balance will also come from a Sprott-controlled company and will be sold to the company’s employee profit sharing plan. If both stock sales are completed then Mr. Sprott will have reduced his stake in the company to 53.2 million shares, which makes him the largest shareholder in the company that was taken public in early 2008 at $10 a share.

Given Mr. Sprott’s age, the stock sales should not come as a complete surprise given his intention to reduce his role at the company. But he is not going too far as most of the proceeds from the sales will be reinvested in Sprott funds.

But the equity sales are noteworthy because they mark the first time that Mr. Sprott has sold shares to the public since going public in the spring of 2008. He has given some of his holdings to new executives who were hired (including, its understood, Kevin Bambrough and Peter Grosskopf) and to the employees profit share plan. Sprott, the company, has issued shares for acquisitions...

- Source, Financial Post, read the full article here.