Deal bolsters treasury for financial flexibility, better balance sheet
By Susanna Moon
Chicago, Oct. 22 - Uranium Energy Corp. said it agreed to sell units by way of private placement for $27.53 million, with the bulk of proceeds already slated for specific projects.
The company expects to sell up 8,096,608 units of one common share and one half-share warrant at $3.40 per unit.
Investors will receive one-year warrants for up to 4,048,304 more shares, exercisable at $3.95 per share, which is equal to the company's closing price on Oct. 21.
"With the company's initial production scheduled to start in Texas this quarter, we are bolstering our treasury to maximize our financial flexibility and improve our balance sheet," Amir Adnani, president and chief executive officer, said in a press release.
"The bulk of these proceeds will be directed toward anticipated start-up at the Goliad ISR project. In addition, the South Texas Uranium Belt holds significant known resources that are amenable to low-cost in-situ recovery, and the company plans to use a portion of proceeds to continue to build a strong and diversified pipeline of advanced, development and exploration-stage properties for expanding production there for many years."
Uranium Energy is a resource company based in Austin, Texas.
| Issuer: | Uranium Energy Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | $27,528,467.20
|
| Units: | 8,096,608
|
| Price: | $3.40
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | years
|
| Warrant strike price: | $3.95
|
| Agent: | Non-brokered
|
| Pricing date: | Oct. 22
|
| Stock symbol: | Amex: UEC
|
| Stock price: | $3.95 at close Oct. 21
|
| Market capitalization: | $145 million
|
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