The Financial Post reports in its Wednesday edition Eric Sprott is reducing his stake in Sprott Inc. The Post's Barry Critchley writes Mr. Sprott announced Tuesday he was selling at least 25 million shares at $3 each. 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 sales are completed then Mr. Sprott will have reduced his stake in the company to 53.2 million shares. Sprott was taken public in early 2008 at $10 a share. The stock sales should not come as a complete surprise given his intention to reduce his role at the company. Most of the proceeds from the sales will be reinvested in Sprott funds. This is the first time Mr. Sprott has sold shares to the public since going public. Mr. Sprott's record of picking winners made the company's initial public offering an easy sale. "At the time we had the best performance, the highest fees and the highest growth. It told a very good story," said former Sprott staffer Peter Hodson.
The Sprott IPO was sold to investors near the top of the market.
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