Mr. Eric Sprott, investor, reports
ERIC SPROTT ANNOUNCES HOLDINGS, INCLUDING HISTORICAL ACQUISITION, OF SECURITIES OF STROUD RESOURCES LTD.
Eric Sprott is providing the following update on his holdings of securities of Stroud Resources Ltd., all of which are held through 2176423 Ontario Ltd., a corporation which is beneficially owned by him.
Mr. Sprott beneficially owns and controls 20,833,333 common shares of Stroud Resources and 8,194,444 share purchase warrants, representing approximately 47 per cent of the issued and outstanding shares on a non-diluted basis and approximately 55.3 per cent on a partially diluted basis assuming exercise of such warrants.
On Oct. 30, 2019, 2176423 Ontario Ltd. acquired 9,423,394 units of Stroud Resources at 15 cents per unit for total consideration of $1,413,509.10. Each unit consisted of one share and one-third of a warrant. Each such warrant is exercisable to purchase one share at a price of 15 cents per share until Aug. 30, 2020, as a result of which 2176423 Ontario Ltd. then held 13,333,333 shares and 4,444,444 warrants (representing approximately 36.2 per cent of the then outstanding shares on a non-diluted basis and 43.1 per cent on a partially diluted basis assuming the exercise of such warrants). Prior thereto, 2176423 Ontario Ltd. held 3,909,939 shares and 1,303,313 warrants (representing approximately 16.6 per cent of the then outstanding shares on a non-diluted basis and 21.0 per cent on a partially diluted basis assuming the exercise of such warrants). As disclosed in the press release of Stroud Resources dated Oct. 30, 2019, Stroud Resources held an annual and special meeting of shareholders on Oct. 23, 2019, and received shareholder approval of the creation of a new control person (Mr. Sprott) in connection with this private placement, as a result of which the 9,423,394 units were issued and holdings increased by approximately 22.1 per cent on a partially diluted basis from what was reported in the most recent early warning report. As a result of inadvertence, a news release and an early warning report for this transaction were not filed.
On July 30, 2020, 2176423 Ontario Ltd. acquired 7.5 million units of Stroud Resources at a price of 40 cents per unit for total consideration of $3-million on a private placement basis. Each unit consists of one share and one-half of a warrant. Each such warrant entitles the holder thereof to acquire one share at a price of 60 cents per share until July 30, 2021. This acquisition, together with the above Oct. 30, 2019, acquisition, resulted in Mr. Sprott's beneficial ownership increasing by approximately 34.3 per cent of the outstanding shares on a partially diluted basis from what was reported in the most recent early warning report, as a result of which Mr. Sprott now beneficially owns and controls the securities mentioned in the second paragraph herein.
Mr. Sprott acquired the securities through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Stroud Resources, including on the open market or through private acquisitions, or sell securities of Stroud Resources, including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other relevant factors.
A copy of 2176423 Ontario Ltd.'s early warning report will appear on Stroud Resources' profile on SEDAR and may also be obtained by calling Mr. Sprott's office at 416-362-3294 (200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J1).
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