Sprott Asset Management Announces Update to Sprott Physical Platinum and Palladium Trust’s At-The-Market Equity Program
Toronto, March 31, 2025 – Sprott Asset Management LP, a subsidiary of Sprott Inc., acting on behalf of the Sprott Physical Platinum and Palladium Trust (NYSE: SPPP) (TSX: SPPP / SPPP.U), a closed-ended mutual fund trust established to invest and hold substantially all of its assets in physical platinum and palladium bullion, has announced an update to its At-The-Market Equity Program (ATM Program).
Key Details of the Update
Under this new update, the Trust intends to issue an additional US$50 million of units of the Trust in the United States and Canada, subject to market conditions. This issuance will be carried out pursuant to a prospectus supplement dated March 31, 2025 (the “Prospectus Supplement”) to the short form base shelf prospectus dated September 6, 2024 (the “Base Shelf Prospectus”).
Availability of Prospectus Documents
Copies of the Prospectus Supplement and the Base Shelf Prospectus are available on EDGAR at the SEC’s website and the SEDAR+ website maintained by the Canadian Securities Administrators. The Trust will no longer be making distributions under previous ATM Program prospectus supplements, including the amended and restated prospectus supplement dated December 6, 2024.
Impact on Individual Investors
For individual investors considering investing in the Trust, it is essential to understand that the Trust’s primary investment objective is to maintain the value of its net asset value per unit by investing and holding substantially all of its assets in physical platinum and palladium bullion. This update to the ATM Program may result in increased liquidity for the Trust, potentially making it a more attractive investment option for some investors.
Impact on the Global Market
On a larger scale, this update to the Sprott Physical Platinum and Palladium Trust’s ATM Program may influence the global market for platinum and palladium. With the Trust’s increased ability to issue additional units, there could be an increased demand for physical platinum and palladium bullion. This, in turn, may lead to price fluctuations in the precious metals market. Additionally, the Trust’s continued interest in physical platinum and palladium bullion may signal a long-term bullish outlook for these metals.
Conclusion
In conclusion, Sprott Asset Management’s announcement of an updated ATM Program for the Sprott Physical Platinum and Palladium Trust could have significant implications for both individual investors and the global precious metals market. As always, it is crucial for investors to carefully consider their investment objectives and the risks associated with investing in a commodity trust before making any decisions.
- Sprott Asset Management announces update to Sprott Physical Platinum and Palladium Trust’s ATM Program
- Trust intends to issue additional US$50 million of units in the US and Canada
- Copies of the Prospectus Supplement and Base Shelf Prospectus available on EDGAR and SEDAR+
- Impact on individual investors: increased liquidity, potentially attractive investment option
- Impact on global market: increased demand for physical platinum and palladium bullion, potential price fluctuations
- Investors should carefully consider investment objectives and risks before investing in a commodity trust
