Eric Sprott Announces Holdings, Including Historical Acquisition, of Securities of Stroud Resources Ltd.
Toronto, Ontario--(Newsfile Corp. - August 4, 2020) - Eric Sprott announces 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 (Shares) and 8,194,444 Share purchase warrants (Warrants), representing approximately 47% of the issued and outstanding Shares on a non-diluted basis and approximately 55.3% on a partially diluted basis assuming exercise of such Warrants.
On October 30, 2019, 2176423 Ontario Ltd. acquired 9,423,394 units of Stroud Resources, at $0.15 per unit for total consideration of $1,413,509.10. Each unit consisted of one Share and 1/3 Warrant. Each such Warrant is exercisable to purchase one Share at a price of $0.15 per Share until August 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% of the then outstanding Shares on a non-diluted basis and 43.1% 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% of the then outstanding Shares on a non-diluted basis and 21.0% on a .partially diluted basis assuming the exercise of such Warrants). As disclosed in the press release of Stroud Resources dated October 30, 2019, Stroud Resources held an annual and special meeting of shareholders on October 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% 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 early warning report for this transaction was not filed.
On July 30, 2020, 2176423 Ontario Ltd. acquired 7,500,000 units of Stroud Resources at a price of $0.40 per unit for total consideration of $3,000,000 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 $0.60 per Share until July 30, 2021. This acquisition, together with the above October 30, 2019 acquisition resulted in Mr. Sprott's beneficial ownership to increase by approximately 34.3% 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.
Stroud Resources is located at 1090 Don Mills Rd., Suite 404, Toronto, Ontario, M3C 3R6. A copy of 2176423 Ontario Ltd.'s early warning report will appear on Stroud Resources' profile on SEDAR at www.sedar.com and may also be obtained by calling Mr. Sprott's office at (416) 362-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario, M5J 2J1).
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/61059