Sherritt International Corp. has recently entered into a non-binding agreement with Gillon Capital LLC, the family office associated with a former member of the Trump administration, for the potential acquisition of a controlling interest in the company. Under the proposed private placement arrangement, Gillon would possess a warrant enabling them to purchase enough shares to obtain a 55% ownership stake in Sherritt. The company anticipates that the acquisition price by Gillon would be below the closing share price on May 15.
Sherritt has been facing challenges due to U.S. sanctions imposed on its operations in Cuba. These sanctions have included a perceived fuel blockade, threats of military intervention, and an expansion of restrictions, prompting international entities to exit Cuba. Despite initial plans to dissolve its Cuban assets, including a partnership with state-owned Nickel Company S.A., the Toronto-headquartered firm announced its decision to reverse course following the introduction of sanctions on the joint venture.
Gillon, representing the Washburne family, has connections to Ray Washburne, who held roles in the Trump administration between 2017 and 2019. Sherritt has disclosed that it has obtained clearance from the U.S. State and Treasury Departments for discussions with Gillon, emphasizing that any formal agreement would necessitate their authorization.