Sprott Physical Gold Trust expands ATM Program by $1 billion

TORONTO - Sprott Asset Management LP, on behalf of the Sprott Physical Gold Trust (NYSE: PHYS) (TSX: PHYS.U), announced today an expansion of its at-the-market equity program (ATM Program). The Trust, which primarily invests in physical gold bullion and currently maintains a market capitalization of $10.98 billion, plans to issue an additional US$1 billion of units in the United States and Canada. The announcement comes as PHYS trades near its 52-week high of $24.38, reflecting strong market confidence. According to InvestingPro data, the Trust has delivered an impressive 32.17% return over the past year.

This move comes with the filing of a prospectus supplement dated today, which supplements the existing base shelf prospectus from September 6, 2024. The Trust has discontinued issuing units under any previous ATM Program prospectus supplements, including one dated December 6, 2024.

Units will be sold through a network of agents, including Cantor Fitzgerald & Co., Virtu Americas LLC, BMO Capital Markets Corp., and Canaccord Genuity LLC in the United States, as well as their Canadian counterparts. Sales will occur on the NYSE Arca and the Toronto Stock Exchange or other recognized markets, with prices based on the prevailing market price at the time of each sale.

Proceeds from the ATM Program are intended for the acquisition of physical gold bullion, aligning with the Trust's investment objectives and operating restrictions. The Trust's management has the discretion to determine the volume and timing of distributions under the ATM Program.

The offering is made in accordance with the terms of an amended and restated sales agreement dated December 6, 2024. The documents related to the offering, including the prospectus supplement and the base shelf prospectus, are available on the SEC's EDGAR and the SEDAR+ websites.

The Trust's strategy is to provide a secure, convenient, and exchange-traded investment alternative for investors interested in holding physical gold bullion without the inconvenience associated with a direct investment. The strategy has proven effective, with the Trust delivering a strong year-to-date return of 20.75%. For deeper insights into PHYS's performance metrics and investment potential, consider exploring additional analysis available on InvestingPro, which offers exclusive financial health scores and detailed valuation metrics.

The listing of the newly issued units on the NYSE and TSX is subject to fulfillment of all applicable listing requirements. This announcement is not an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where it would be unlawful to do so.

This news article is based on a press release statement.

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