Deal with Sprott Resource and CEF (Capital Markets) includes warrants
By Devika Patel
Knoxville, Tenn., July 31 - Uranium Energy Corp. said it arranged a $20 million senior secured credit facility with Sprott Resource Lending Partnership and CEF (Capital Markets) Ltd. The deal will settle in three tranches of $10 million, $5 million and $5 million.
The two-year loan bears interest at 8%.
The investors also will receive a 4.5% fee in the form of common shares and 2.6 million warrants. The warrants are exercisable for common stock at $2.50 per share for three years. The strike price reflects a 6.38% premium to the July 30 closing share price of $2.35.
Proceeds will be used for the development, operation and maintenance of the company's Hobson, Goliad and Palangana projects and for working capital purposes.
Uranium Energy is a resource company based in Austin, Texas.
| Issuer: | Uranium Energy Corp.
|
| Issue: | Senior secured credit facility
|
| Amount: | $20 million
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Warrants: | 2.6 million
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $2.50
|
| Investor: | Sprott Resource Lending Partnership and CEF (Capital Markets) Ltd.
|
| Fees: | 4.5% in common shares
|
| Pricing date: | July 31
|
| Stock symbol: | NYSE: UEC
|
| Stock price: | $2.35 at close July 30
|
| Market capitalization: | $194.11 million
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