And Then There Were Two.....
So, in a nutshell, Novo (the third of the "big three" NFG shareholding entities along with Palisades and Sprott) sells their stake in NFG to Sprott at prices notably higher (8.35 and 8.45) than where NFG shares have been trading over the past 30 days (mid-to-high 7's).
My views:
1) Looks like a good deal for Sprott even though he had to pay higher prices than what anyone in here could have paid for them at almost any point over the past three months, as he now controls 31.4% of the company, approximately the same portion as Palisades plus Collin Kettell controls. Thus, these two entities will own slightly over 60% of shares outstanding.
2) While NFG does not reap any cash like they would an equity offering or private placement, it does show the investment community that Sprott was willing to pay a premium to the current market price to acquire a signficantly larger stake in the company.
3) Novo must really need the money. The company's share price has taken a beating over the past couple of years (from around 4.00 in July 2020 to a close of 0.96 yesterday). Ironically, Quinton Hennigh was the Chairman and President of Novo but stepped down in August 2021. However, he's still a Board Member at both Novo and NFG, so maybe he was either out-voted at Novo or agreed the deal needed to be done given Novo's current circumstances....?
Overall, a positive for NFG as it shows Sprott has put a lot more of his chips on NFG at higher-than-recent market prices.