Deal sells units of shares, three-year warrants via H.C. Wainwright
By Devika Patel
Knoxville, Tenn., Oct. 18 - Uranium Energy Corp. said it priced a $7.1 million sale of units on Thursday.
The company will sell 3,380,952 units of one common share and 0.55 warrants at $2.10 per unit. Each whole warrant will be exercisable at $2.60 for three years. The strike price is a 16.07% premium to the Oct. 16 closing share price of $2.24.
H.C. Wainwright & Co., LLC is the agent.
Settlement is expected on Oct. 23.
Proceeds will be used for exploration and pre-extraction expenditures at the company's South Texas projects, including the Burke Hollow Project, and general corporate and working capital purposes.
"We are very pleased to secure this capital injection for the company on attractive terms that will support the growth of our South Texas hub-and-spoke strategy and provide us with greater financial flexibility," president and chief executive officer Amir Adnani said in a press release.
"As the recently established $20 million credit facility is earmarked for our Palangana and Goliad projects, including working capital, this new funding will enable us to further our efforts at Burke Hollow and other exploration opportunities within hauling distance of our central Hobson processing facility.
"With the Hobson plant having a physical capacity of two million pounds per year processing, it is key that we advance the permitting and exploration of our projects to maximize the uranium output when higher uranium prices are realized," Adnani added.
Uranium Energy is a resource company based in Austin, Texas.
| Issuer: | Uranium Energy Corp.
|
| Issue: | Units of one common share and 0.55 warrants
|
| Amount: | $7.1 million
|
| Units: | 3,380,952
|
| Price: | $2.10
|
| Warrants: | 0.55 warrants per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $2.60
|
| Agent: | H.C. Wainwright & Co., LLC
|
| Pricing date: | Oct. 17
|
| Settlement date: | Oct. 23
|
| Stock symbol: | NYSE: UEC
|
| Stock price: | $2.24 at close Oct. 16
|
| Market capitalization: | $177.57 million
|
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