TORONTO, March 17, 2021 – Ninepoint Partners LP (“Ninepoint”) is pleased to announce that the Ninepoint 2021 Flow-Through Limited Partnership (the “Partnership”) has completed the second and final closing in connection with its offering of limited partnership units of the National Class and the Québec Class (together, the “Units”) pursuant to a prospectus dated January 22, 2021. The Partnership raised $6,483,575 on the sale of an additional 236,444 National Class Units and 22,899 Quebec Class Units for aggregate gross proceeds of $66,885,725. The Units are being offered at a subscription price of $25.00 per Unit with a minimum subscription of 100 Units ($2,500).
The Partnership intends to provide liquidity to limited partners through a tax-deferred rollover to the Ninepoint Resource Class in the period between January 15, 2023 and February 28, 2023.
Ninepoint is a leading manager of Flow-Through Funds in Canada. Since its inception in 2017, Ninepoint has successfully raised more Flow-Through Fund capital than any other asset manager in Canada. Flow Through strategies continue to provide an effective time-tested tax planning strategy to Canadian investors and have consistently delivered strong after-tax returns.
|Ninepoint Flow-Through Fund||After Tax Return*|
|2020 Flow-Through National Class Series A||129.7%|
|2020 Flow-Through National Class Series F||136.8%|
|2020 Flow-Through Quebec Class Series A||85.4%|
|2020 Flow-Through Quebec Class Series F||88.9%|
|2019 Flow-Through Short Duration||150.4%|
*The after-tax rate of return has been calculated assuming: I. The Limited Partner is an individual resident of Ontario and who was subject to the highest marginal tax rate, other than Quebec Classes where it is assumed the Limited Partners is an individual resident in Quebec who was subject to the highest marginal tax rate; II. Disposition proceeds were equal to the net asset value per unit of each partnership as at the date of the rollover on February 5, 2021; III. The Limited Partner is not liable for alternative minimum tax; and IV. Certain other assumptions made in the prospectus may also be relevant.
Investment Objective of the Partnership
The Partnership’s investment objective is to achieve capital appreciation and significant tax benefits for Limited Partners by investing in a diversified portfolio of Flow-Through Shares (as defined in the Prospectus) and other securities, if any, of Resource Issuers (as defined in the Prospectus). Investments made with the proceeds from the National Class Units will be made in Resource Issuers across Canada and investments made with the proceeds from the Québec Class Units will be made in Resource Issuers carrying out activities primarily in the Province of Québec.
Attractive Tax-Reduction Benefits
Flow-through partnerships are one of the most effective tax reduction strategies available to Canadians. Ninepoint anticipates that investors participating in the Partnership will be eligible to receive a tax deduction of approximately 100% of the amount invested.
The Partnership will be sub-advised by Sprott Asset Management LP (“Sprott”), one of Canada’s leading investment advisors in small and mid-cap resource companies. Over its long history of investing in the resource sector, Sprott has developed relationships with hundreds of companies. Its experienced team of portfolio managers is supported by a team of technical experts with extensive backgrounds in mining and geology.
Portfolio manager Jason Mayer will manage the portfolio of the Partnership and will be supported by Sprott’s broader team of experienced resource investment professionals.
The offering is being made through a syndicate of agents led by RBC Dominion Securities Inc, which includes CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., Richardson Wealth Limited, iA Private Wealth Inc., Manulife Securities Incorporated, Raymond James Ltd., Canaccord Genuity Corp. and Desjardins Securities Inc.
About Ninepoint Partners LP
Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $8 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies including Alternative Income and Real Assets, in addition to North American and Global Equities.
About Sprott Asset Management LP
Sprott is a wholly-owned subsidiary of Sprott Inc., an alternative asset manager and a global leader in precious metal and real asset investments. Through its subsidiaries in Canada, the US and Asia, Sprott Inc. is dedicated to providing investors with specialized investment strategies that include Exchange Listed Products, Managed Equities, Lending and Brokerage. Sprott Inc.’s common shares are listed on the New York Stock Exchange under the symbol (NYSE: SII) and Toronto Stock Exchange under the symbol (TSX:SII). For more information, please visit www.sprott.com.