TORONTO, Aug. 13, 2018 (GLOBE NEWSWIRE) -- (TSX: SRHI) - Sprott Resource Holdings Inc. ("SRHI" or the "Company") today announced that it is proceeding with its proposed consolidation (the “Share Consolidation”) of its share capital on the basis of twenty (20) existing common shares for one (1) new common share. The Share Consolidation was previously approved by shareholders at a meeting held on May 10, 2018 and has been conditionally approved by the Toronto Stock Exchange (the “TSX”).

The Board of Directors of SRHI believes that establishing a higher market price for the Company’s common shares could increase investment interest for the common shares in equity capital markets by potentially broadening the pool of investors that may consider investing in the Company, including investors whose internal investment policies prohibit or discourage them from purchasing stocks trading below a certain minimum price.

Currently, a total of 681,680,846 common shares in the capital of SRHI are issued and outstanding. Accordingly, once put into effect on the basis of twenty (20) existing common shares for one (1) new common share, a total of approximately 34,084,042 common shares in the capital of SRHI would be issued and outstanding, assuming no other change in the issued capital. No fractional shares will be issued in connection with the Share Consolidation. The Share Consolidation is anticipated to become effective today.

The Company’s common shares are expected to begin trading on the TSX on a consolidated basis under the same trading symbol (SRHI) on or about August 15, 2018. The new CUSIP and ISIN numbers for the consolidated shares are 85209D408 and CA85209D4084, respectively. Shareholders who hold their shares through a securities broker or dealer, bank or trust company, will not be required to take any action with respect to the Share Consolidation. A letter of transmittal was mailed to the registered holders of the Company’s common shares on April 18, 2018, requesting that those shareholders forward their pre-consolidation share certificates to the Company’s transfer agent, TSX Trust Company, to be exchanged for new share certificates representing their common shares on a post-consolidation basis. The letter of transmittal can be found on the Company’s website at http://sprott.com/investment-strategies/sprott-resource-holdings/investor-information/2018-agm/ and under the Company’s profile on SEDAR at www.sedar.com.  

The Share Consolidation will also affect the Company’s issued warrants and granted stock options at the effective date. At the time of the Share Consolidation, the number, exercise price or exchange basis of all warrants and stock options will be adjusted, as applicable, to reflect the twenty-for-one Share Consolidation.

Please refer to the management information circular of the Company dated March 27, 2018 for additional details on the Share Consolidation. The circular is available on the Company’s website at http://sprott.com/investment-strategies/sprott-resource-holdings/investor-information/2018-agm/ and under the Company’s profile on SEDAR at www.sedar.com.

About Sprott Resource Holdings Inc.

SRHI acquires and grows a portfolio of cash-flowing businesses and businesses expected to cash flow in the natural resource sector. Based in Toronto, SRHI is part of the Sprott Group of Companies and seeks to deploy capital to provide our investors with exposure to attractive commodities. For more information about SRHI, please visit www.sprottresource.com.

Forward-Looking Information

Certain statements in this press release contain forward-looking information (collectively referred to herein as the "Forward-Looking Statements") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify Forward-Looking Statements. In particular, but without limiting the forgoing, this press release contains Forward-Looking Statements pertaining to: (i) SRHI’s expectations regarding the impact of the Share Consolidation, including increased investment interest; (ii) the expected number of common shares issued and outstanding following the Share Consolidation; (iii) the anticipated effective date of the Share Consolidation; (iv) the date on which the common shares are expected to start trading on the TSX on a consolidated basis; (v) the expected effect of the Share Consolidation on the Company’s issued warrants and granted stock options; and (vi) expectations regarding cash flow. 

Although SRHI believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements. Actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements should assumptions underlying the Forward-Looking Statements prove incorrect or should one or more risks or other factors materialize, including: (i) general economic, market and business conditions; (ii) market volatility that would affect the ability to enter or exit investments; (iii) commodity price fluctuations and uncertainties and, in particular the price of copper; (iv)  risks associated with the portfolio companies’ industries; (v) those risks disclosed under the heading "Risk Management" in SRHI's Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2017; (vi) those risks disclosed under the heading “Risk Management” in SRHI’s MD&A for the three months ended March 31, 2018; and (vii) those risks incorporated by reference in SRHI’s Annual Information Form dated March 29, 2018. The Forward-Looking Statements speak only as of the date hereof, unless otherwise specifically noted, and SRHI does not assume any obligation to publicly update any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable Canadian securities laws.

For further information:

Glen Williams
Director of Communications
T: (416) 943-4394
E: [email protected]

Source: Sprott Resource Holdings Inc.