Sprott Focus Trust Press Release
Sprott Focus Trust, Inc. (Nasdaq-FUND) Implements a Share Repurchase Program
TORONTO, Nov. 20, 2020 (GLOBE NEWSWIRE) -- The Board of Trustees (the "Board") of Sprott Focus Trust, Inc. (the “Fund” or Nasdaq ticker “FUND”), advised by Sprott Asset Management L.P. and sub-advised by Sprott Asset Management USA, Inc. (collectively, the "Advisers"), announced today that the Board has authorized and approved a share repurchase program for up to $50 million aggregate purchase price of the currently outstanding shares of the Company’s common stock through 2021. Under the share repurchase program, the Fund may purchase up to 5% of its outstanding common shares as of November 20, 2020, in the open market, between now and December 31, 2021. As part of its evaluation of options to enhance shareholder value, the Board has authorized the Advisers to repurchase its Fund's common shares at such times and in such amounts as the Advisers reasonably believe may enhance shareholder value.
The Board and the Advisers continually analyze options to enhance shareholder value including responding to market events such as extreme volatility during certain periods. The Board and the Advisers believe that the share repurchase program is a positive step that will put the Fund in a better position to address unforeseen circumstances as markets adapt to new economic and global realities. This step potentially provides additional liquidity in the trading of the Fund shares, directly benefiting all of its shareholders. The Board will monitor the repurchase program and will continue to consider strategic options to enhance shareholder value in the long-term.
The Fund’s repurchase program will be implemented on a discretionary basis under the direction of the Advisers. The Fund’s repurchase activity, including the number of shares purchased, the average purchase price and the average discount to NAV, will be disclosed in the Fund's annual and semi-annual reports to shareholders. There is no assurance that the Fund will purchase shares at any specific discount levels or in any specific amounts or that the market prices of the Fund’s shares, either absolutely or relative to its NAV, will increase as a result of any share repurchases.
About Sprott Focus Trust, Inc.
Sprott Focus Trust, Inc. is a closed-end diversified management investment company whose shares of Common Stock are listed and traded on the Nasdaq Global Select Market. The Fund’s investment goal is long-term capital growth, which it seeks by normally investing at least 65% of its assets in equity securities.
For further information on the Fund, please visit our web site at: www.sprottfocustrust.com. An investor should consider investment objectives, risks, charges and expenses carefully before investing. The Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. The Fund trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker.