Sprott strikes deal to buy Toscana companies for $14 million

Date: Wednesday, February 29, 2012
Author: The Canadian Press

Investment manager acquires a team of energy specialists and lenders as well as a Calgary presence Investment firm Sprott Inc. (TSX:SII) says it has signed a letter of intent to acquire Toscana Capital Corp, and its Toscana Energy unit for $14 million in cash and Sprott shares. The Toronto company said Wednesday it could also pay another $5.25 million in shares over three years if Toscana hits its financial targets. The Toscana group is based in Calgary and helps finance energy companies and invests in the oil and gas sector. Toscana has assets of about $161 million. The companies hope to close the deal by the middle of the second quarter. "In the Toscana Companies, we are acquiring a leading team of energy specialists and lenders as well as a Calgary presence," said Peter Grosskopf, chief executive of Sprott. "We believe that each of Toscana's energy lending business, managed working interest portfolio and flow through investment vehicles have significant growth potential." Joseph Durante, CEO of Toscana, said "Sprott is a well-known natural investor and with the combination of our two companies, Sprott's footprint in Calgary will only grow."