SPROTT PHYSICAL GOLD TRUST Amendment No. 1 to Controlled Equity OfferingSM Sales Agreement
Exhibit 99.1
Amendment No. 1 to
Controlled Equity OfferingSM
Sales Agreement
January 29, 2020
Cantor Xxxxxxxxxx & Co.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Virtu Americas LLC
Xxx Xxxxxxx Xxxxx
000 Xxxxxxxx
Xxx Xxxx, XX 00000
Ladies and Gentlemen:
Reference is made to the Controlled Equity OfferingSM Sales Agreement, dated May 6, 2016, including the Schedules thereto (the “Sales Agreement”), by and among Sprott Physical Gold
Trust, a trust formed and organized under the laws of the Province of Ontario (the “Trust”), Sprott Asset Management LP, a limited partnership organized under the laws of the Province of Ontario (the “Manager”), and Cantor Xxxxxxxxxx
& Co. (the “Agent”), pursuant to which the Company agreed to sell through the Agent, as sales agent, units of the Trust. All capitalized terms used in this Amendment No. 1 to Controlled Equity OfferingSM Sales Agreement (this
“Amendment”) among the Trust, the Manager, and the Agents (as defined below) and not otherwise defined herein shall have the respective meanings assigned to such terms in the Sales Agreement. The Trust, the Manager, the Agent and Virtu
Americas LLC (“Virtu” and together with the Agent, the “Agents”) agree as follows:
A. Amendments to Sales Agreement. On the date hereof (the “Amendment Date”), Virtu shall become an additional party to the Sales Agreement by executing this Amendment with all rights
and obligations as a sales agent and the Sales Agreement is further amended as follows:
1. The introductory paragraph shall be amended and restated as follows:
“Sprott Physical Gold Trust, a trust formed and organized under the laws of the Province of Ontario (the “Trust”) and managed by
Sprott Asset Management LP, a limited partnership organized under the laws of the Province of Ontario (the “Manager”), each confirm their agreement (this “Agreement”)
with Cantor Xxxxxxxxxx & Co. and Virtu Americas LLC (each individually an Agent and together, the “Agents”), as follows:”
2. Any references in the Sales Agreement to “Agent” or “Agent’s” in the singular shall be amended to refer to “Agents” or “Agents’” in the plural and any applicable verbs
or pronouns shall be similarly changed from the singular form to the plural form.
3. In the first paragraph of Section 1, the reference to “April 22, 2014” shall be changed to “June 20, 2018.”
4. In the third paragraph of Section 1, the reference to “(File No. 333-195434)” shall be changed to “(File No. 333-225771).”
5. In the first sentence of Section 2, the reference to “the Agent” shall be changed to “one of the Agents.”
6. New Section 5(f) shall be added as follows:
“(f) Sales Through the Agents. With respect to the offering and sale of Placement Units pursuant to this Agreement, the Trust agrees that any offer to sell Placement Units, any
solicitation of an offer to buy Placement Units, and any sales of Placement Units shall only be effected by or through a single Agent on any single given day, and the Trust shall in no event request that more than one Agent offer or sell Placement
Units pursuant to this Agreement on the same day.”
7. Section 10(b) is deleted in its entirety and replaced with the following:
“Indemnification by the Agents. Each respective Agent, severally but not jointly, agrees to indemnify and hold harmless the Manager and the Trust, the officers of the Manager who sign the
Registration Statement and each person, if any, who controls the Trust within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage and expense described in the indemnity
contained in Section 10(a), as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendments thereto) or the Prospectus (or any amendment or
supplement thereto) in reliance upon and in conformity with information relating to such respective Agent and furnished to the Trust in writing by such respective Agent expressly for use therein. The Trust and the Manager hereby acknowledge that the
only information that the Agents have furnished to the Trust and the Manager expressly for use in the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) are the statements set forth
in the seventh paragraph under the caption “Plan of Distribution” in the Prospectus (the “Agent Information”).”
8. Section 11(e) shall be amended by adding the following sentence at the end of the paragraph:
“The Agents’ respective obligations to contribute pursuant to this Section 11(e) are several in proportion to the respective number of Placement Units they have sold hereunder, and not joint.”
9. Section 12(a) shall be amended by adding the following sentence at the end of the paragraph:
“For the avoidance of doubt, the termination by one of the Agents of its rights and obligations under this Agreement pursuant to this Section 12(a) shall not affect the rights and obligations of the
other Agent under this Agreement.”
10. Section 12(c) shall be amended by adding the following sentence at the end of the paragraph:
“For the avoidance of doubt, the termination by one of the Agents of its rights and obligations under this Agreement pursuant to this Section 12(c) shall not affect the rights and obligations of the
other Agent under this Agreement.”
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11. Section 13 is amended to update the notices for the Agents and Trust or Manager as follows:
Cantor Xxxxxxxxxx & Co.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Capital Markets
Facsimile: (000) 000-0000
Virtu Capital Markets
Virtu Financial
Xxx Xxxxxxx Xxxxx
000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Virtu Capital Markets
Virtu Financial
Xxx Xxxxxxx Xxxxx
000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Virtu Capital Markets
and with a copy (which shall not constitute notice) to:
Cantor Xxxxxxxxxx & Co.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: General Counsel
Facsimile: (000) 000-0000
Xxxxxx LLP
00 Xxxxxx Xxxxx
Xxx Xxxx, XX 00000-0000
Attention: Xxxxxx X. Xxxxxxxx, Esq.
Facsimile: (000) 000-0000
Stikeman Elliott LLP
0000 Xxxxxxxx Xxxxx X. 000 Xxx Xx.
Xxxxxxx, Xxxxxxx X0X 0X0
Attention: Xxxxxx X. Xxxxxxx
Facsimile: (000) 000-0000
Sprott Physical Gold Trust/Sprott Asset Management LP
Royal Bank Plaza, South Tower
000 Xxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxx X0X 0X0
Attention: Xxxxxx Xxxxx/Xxxxx Xxxxx
12. Section 21 is deleted in its entirety and replaced with the following:
21. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile or electronic transmission.
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13. Schedule 3 is amended to update the Notice Parties for the Manager and Agents as follows:
The Manager
Xxxxx Xxxxxxxxx (xxxxxxxxxx@xxxxxx.xxx)
Xxxxxx Xxxxx (xxxxxx@xxxxxx.xxx)
Xxxxx Xxxxx (xxxxxx@xxxxxx.xxx)
Cantor Xxxxxxxxxx & Co.
Xxxxxx Xxxxxxx (xxxxxxxx@xxxxxx.xxx)
Xxxxxx Xxxxxx (xxxxxxx@xxxxxx.xxx)
With copies to:
XXXxxxxxxxxxXxxxxxXxxxxxxx@xxxxxx.xxx
Virtu Capital Markets
Xxxx Xxxxx (jlumby @xxxxx.xxx)
Xxxxxx Xxxxxxx (xxxxxxxx@xxxxx.xxx)
Xxxxx Xxxxx (xxxxxx@xxxxx.xxx)
With copies to:
XXX@Xxxxx.xxx
B. Prospectus Supplement. The Company shall prepare and file in accordance with General Instruction II.L of Form F-10 of the Securities Act, a Prospectus Supplement reflecting this
Amendment.
C. Canadian Basic Prospectus. The parties hereto acknowledge that any reference to the Canadian Basic Prospectus in the Sales Agreement shall refer to the final short form base shelf
prospectus dated June 20, 2018, or any subsequent final short form base shelf prospectus, filed with the OSC as principal regulator and with each of the other Canadian Securities Commissions in accordance with the Shelf Procedures.
D. Notwithstanding anything to the contrary contained herein, this Amendment shall not have any effect on the terms of the Sales Agreement prior to the Amendment Date, and the rights and
obligations of the parties thereunder, including, without limitation, the representations, warranties and agreements (including the indemnification and contribution provisions), as well as the definitions of “Registration Statement,” “Basic
Prospectus,” “and “Prospectus,” contained in the Sales Agreement.
E. No Other Amendments. Except as set forth in Part A above, all the terms and provisions of the Sales Agreement shall continue in full force and effect.
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F. Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Delivery of an executed Amendment by one party to the other may be made by facsimile or electronic transmission.
G. Governing Law. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New York without regard to the principles of conflicts of
laws.
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If the foregoing correctly sets forth the understanding among us, please so indicate in the space provided below for that purpose.
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Very truly yours,
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By its manager, Sprott Asset Management LP
By its general partner, Sprott Asset Management GP Inc.
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By:
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/s/ Xxxx Xxxxxxxxxx
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Name: Xxxx Xxxxxxxxxx
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Title: Chief Executive Officer
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SPROTT ASSET MANAGEMENT LP
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By its general partner, Sprott Asset Management GP Inc.
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By:
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/s/ Xxxxx Xxxxxxxxx
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Name: Xxxxx Xxxxxxxxx
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Title: Director
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ACCEPTED as of the date first-above written:
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CANTOR XXXXXXXXXX & CO.
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By:
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/s/ Xxxx Xxxxxx
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Name: Xxxx Xxxxxx
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Title: Chief Operating Officer
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VIRTU AMERICAS LLC
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By:
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/s/ Xxxxxxx Xxxxx | |
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Name: Xxxxxxx Xxxxx
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Title: Head of Virtu Capital Markets
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