Sprott Physical Copper Trust (SCOP) replaced its ATM equity program with a $250M facility to fund physical copper purchases. Details on dilution and market impact.
Alpha Score of 62 reflects moderate overall profile with strong momentum, weak value, weak quality, moderate sentiment.
Sprott Physical Copper Trust (NYSE: SCOP) replaced its at-the-market equity program with a new $250 million facility, Sprott Asset Management said Tuesday. The program lets the trust issue units on the NYSE and Toronto Stock Exchange at prevailing market prices. Proceeds will go toward buying physical copper.
The new ATM program replaces a previous one announced May 4, which has been terminated. The trust has not disclosed how many units it may sell or the timing. Any sales are at the trust's discretion.
The trust is a closed-ended mutual fund trust that holds physical copper. Issuing new units at market prices can dilute existing holders if the copper price is low relative to net asset value. Conversely, if the trust buys copper when prices are weak, it could boost future returns per unit.
Sprott Asset Management named Cantor Fitzgerald, Virtu Americas, BMO Capital Markets and Canaccord Genuity as U.S. agents. Canadian agents include Cantor Fitzgerald Canada, Virtu Canada, BMO Nesbitt Burns and Canaccord Genuity Corp.
The offering is made under a prospectus supplement dated July 29, filed with the SEC and Canadian regulators. The trust's units trade under the ticker SCOP in the U.S. and COP.UN and COP.U in Canada.
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