Sherritt International Corp. has recently entered into a non-binding agreement with Gillon Capital LLC, the family office of a former Trump administration adviser. This agreement would enable Gillon to acquire a controlling interest in the company. Under the proposed private placement deal, Gillon would possess a warrant allowing it to purchase sufficient shares to hold a 55% stake in Sherritt.
Should the agreement progress, Sherritt anticipates that the purchase price agreed upon with Gillon will be below the closing share price recorded on May 15. The company has faced heightened challenges due to U.S. sanctions impacting its operations in Cuba. These sanctions, enforced by the Trump administration since January, have included a de facto fuel blockade and expanded restrictions, compelling foreign enterprises to exit the region.
Sherritt, headquartered in Toronto, recently announced its decision to retain its Cuban interests, including a partnership with Nickel Company S.A., a Cuban state-owned nickel firm. This reversal comes after initially planning to dissolve these interests following U.S. sanctions on the joint venture.
Gillon, managed by the Washburne family, has ties to Ray Washburne, who served as the head of the U.S. development bank under President Donald Trump from 2017 to 2019. Subsequently, he was appointed to the president’s intelligence advisory board. Sherritt has disclosed that the U.S. State and Treasury departments have not objected to Gillon’s discussions with the company but emphasized that any agreement would necessitate their approval.