The investment landscape shifted on May 14, 2026 when 2176423 Ontario Ltd., a company beneficially owned by Eric Sprott, purchased 8,500,500 common shares of Honey Badger Silver Inc. over the TSX Venture Exchange. The acquisition was executed at an average price of $0.72 per share, for an aggregate consideration of $6,120,360.00. This transaction increased Mr. Sprott’s direct share ownership and, combined with existing derivative instruments he holds, created a holding level that required disclosure under Canadian early warning rules.
Before this trade, Mr. Sprott already beneficially owned 4,278,195 shares and 3,333,333 share purchase warrants. In addition, he held 5,000,000 subscription receipts acquired in a private placement on April 15, 2026. Each of those Subscription Receipts will automatically convert into one Unit if escrow release conditions are satisfied on or before June 15, 2026, and each Unit consists of one Share and one Warrant, per Honey Badger Silver’s press release referenced on April 15, 2026.
Post-transaction holdings and percentages
Following the May 14, 2026 purchase, the beneficial ownership held through Mr. Sprott’s vehicle rose to 12,778,695 shares and 3,333,333 warrants. On a non-diluted basis this represents approximately 8.2% of the outstanding shares, while on a partially diluted basis—assuming exercise of existing warrants—it represents roughly 10.1%. Because the acquisition pushed Mr. Sprott’s effective influence above relevant disclosure thresholds, an early warning report was required to ensure market transparency about the change in ownership.
Potential position after subscription receipt conversion
If the Subscription Receipts convert as anticipated, Mr. Sprott’s position would increase to 17,778,695 shares and 8,333,333 warrants. Under that scenario, his stake would represent approximately 7.8% on a purely non-diluted basis and about 11.1% on a partially diluted basis, reflecting the additional Units that would enter the capital structure. These figures illustrate how convertible instruments can materially change an investor’s exposure when escrow or other release conditions are met.
Investor intent and flexibility
The purchased Shares were acquired for investment purposes. Mr. Sprott has indicated a long-term orientation toward this holding, but retains the ability to adjust his exposure: he may continue to acquire additional securities on the open market or through private transactions, or alternatively dispose of holdings via market sales or private placements, depending on evolving market conditions and strategic considerations. Such statements reflect standard investor rights and flexibility rather than a committed plan to buy or sell specific amounts.
Regulatory and reporting details
Because the acquisition resulted in holdings rising above the regulatory threshold requiring disclosure, an early warning report will be posted on SEDAR+ at www.sedarplus.ca. Interested parties may also obtain a copy by contacting Mr. Sprott’s office by phone at (416) 945-3294 or by mail to 2176423 Ontario Ltd., 7 King Street East, Suite 1106, Toronto, ON M5C 3C5. Honey Badger Silver’s corporate address remains 620-1111 Melville Street, Vancouver, BC, V6E 3V6, where further corporate disclosures are available.
What this means for stakeholders
For shareholders and market observers, the transaction signals renewed institutional interest in Honey Badger Silver. While the purchase alone does not change the company’s operations, larger stakes by well-known investors can affect liquidity, market perception and potential future financing dynamics. It also underscores the importance of monitoring both direct share purchases and convertible instruments—such as subscription receipts and warrants—since their eventual conversion or exercise can alter ownership percentages and trigger additional regulatory disclosures.
