A-Mark Closes Previously Announced Investment in Silver Gold Bull

EL SEGUNDO, Calif., June 27, 2022 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading fully integrated precious metals platform, has closed its previously announced purchase of an additional 40% of the outstanding equity interest in Calgary-based Silver Gold Bull Inc. (SGB), a leading e-commerce precious metals retailer in Canada.

SGB Transaction Terms
As previously disclosed, at the time of the signing of the definitive agreement, the SGB business was valued at approximately $110.0 million.  In accordance with the definitive agreement, the total consideration paid at the closing consisted of $34 million in cash and 253,928 shares of A-Mark common stock. As a result of this transaction, A-Mark now owns 47.4% of the outstanding equity of SGB.

In connection with the closing, A-Mark and SGB entered into a four-year extension to the current supplier agreement, extending its expiration to December 2026. A-Mark will also have the right, subject to further review under applicable Canadian Competition laws, to purchase an additional 27.7% of the outstanding equity of SGB to bring its ownership interest to 75%. The option is exercisable between months 18 and 27 following closing.

SGB Board of Director Appointment
In connection with the increased investment in SGB, A-Mark’s Chief Financial Officer, Kathleen Simpson-Taylor, was appointed to SGB’s board of directors, joining A-Mark’s Chief Executive Officer, Greg Roberts.

Transaction Advisors
D.A. Davidson & Co. acted as financial advisor to A-Mark, and Kramer Levin Naftalis & Frankel LLP, Frye & Hsieh LLP and Fasken Martineau DuMoulin LLP acted as legal advisors to A-Mark. MLT Aikins LLP (M&A and Corporate) and Blake, Cassels & Graydon LLP​ (Competition Matters) acted as legal advisors to SGB.

About A-Mark Precious Metals
Founded in 1965, A-Mark Precious Metals, Inc. (NASDAQ: AMRK) is a leading fully integrated precious metals platform that offers an array of gold, silver, platinum, palladium, and copper bullion, numismatic coins and related products to wholesale and retail customers via a portfolio of channels. The company conducts its operations through three complementary segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The company’s global customer base spans sovereign and private mints, manufacturers and fabricators, refiners, dealers, financial institutions, industrial users, investors, collectors, and e-commerce and other retail customers.