An anonymous director reports
NINEPOINT PARTNERS ANNOUNCES FIRST CLOSING OF NINEPOINT 2020 FLOW-THROUGH LIMITED PARTNERSHIP
Sprott Inc.'s Sprott Asset Management LP is the subadviser to Ninepoint Partners LP's Ninepoint 2019 Short Duration Flow-Through LP. The partnership has completed the first closing in connection with its offering of limited partnership units of the national class and the Quebec class, pursuant to a prospectus dated Jan. 31, 2020. The partnership issued 464,552 national class units and 129,420 Quebec class units for aggregate gross proceeds of $14,849,300. The partnership will have a second closing in respect of the units on or about March 10, 2020. The units are being offered at a price per unit of $25, with a minimum subscription of 100 units ($2,500).
The partnership has retained Sprott Asset Management to act as subadviser to the partnership. The partnership intends to provide liquidity to limited partners through a rollover to the Ninepoint Resource Class in the period between Jan. 15, 2022, and Feb. 28, 2022.
Investment objective of the partnership
The partnership's investment objective is to achieve capital appreciation and significant tax benefits for limited partners by investing in a diversified portfolio of flow-through shares and other securities, if any, of resource issuers. Investments made with the proceeds from the national class units will be made in resource issuers across Canada, and investments made with the proceeds from the Quebec class units will be made in resource issuers carrying out activities primarily in the province of Quebec.
Attractive tax reduction benefits
Flow-through partnerships are one of the most effective tax reduction strategies available to Canadians. Ninepoint anticipates that investors participating in the partnership will be eligible to receive a tax deduction of approximately 100 per cent of the amount invested.
The partnership will be subadvised by Sprott, one of Canada's leading investment advisers in small-cap and mid-cap resource companies. Over its long history of investing in the resource sector, Sprott has developed relationships with hundreds of companies. Its experienced team of portfolio managers is supported by a team of technical experts with extensive backgrounds in mining and geology.
Portfolio manager Jason Mayer will manage the portfolio of the partnership and will be supported by Sprott's broader team of experienced resource investment professionals.
The offering is being made through a syndicate of agents led by RBC Dominion Securities Inc., which includes: CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., Stifel Nicolaus Canada Inc., Industrial Alliance Securities Inc., Manulife Securities Inc., Raymond James Ltd., Canaccord Genuity Corp. and Desjardins Securities Inc.
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