Sprott Asset Management LP is proposing to merge Sprott Global Equity Fund into Sprott All Cap Fund effective November 30, the investment management company said Monday.

Unitholders of each series of Sprott Global Equity Fund will receive units of the equivalent series of Sprott All Cap Fund, determined on a dollar-for-dollar basis.

The merger will be a material change for Sprott All Cap Fund, as the net asset value of Sprott All Cap Fund is smaller than the net asset value of Sprott Global Equity Fund. Accordingly, unitholders of each of these funds will be asked to approve the merger.

Unitholder approval will be sought at special meetings to be held on November 25 If the requisite approvals are obtained, it is expected that the merger will be implemented effective on or about November 30. As soon as practicable following the merger, Sprott Global Equity Fund will be wound up.

The Independent Review Committee of each of the funds will review the potential conflict of interest matters related to the proposed merger to provide its recommendation as to whether the proposed merger, if implemented, would achieve a fair and reasonable result for each of the funds.

Units of Sprott Global Equity Fund will cease to be available for sale, except for distribution of units under pre-authorized chequing plans. Unitholders of Sprott Global Equity Fund will have the right to redeem their units up to the close of business on the business day immediately preceding the effective date of the merger.

Following the merger, all pre-authorized chequing plans that had been established with respect to Sprott Global Equity Fund will be re-established with Sprott All Cap Fund, unless an investor advises Sprott otherwise. Investors may change or cancel any pre-authorized plan at any time.

Information detailing the proposed merger will be sent to investors in Sprott Global Equity Fund and investors in Sprott All Cap Fund who are entitled to vote in late October.

IE