Investors Sprott and CEF to get 100,000 common shares as extension fee
By Devika Patel
Knoxville, Tenn., March 14 - Uranium Energy Corp. said it extended the term of its $20 million senior secured credit facility with Sprott Resource Lending Partnership and CEF (Capital Markets) Ltd. to four years from two years. The facility was negotiated on July 31, 2013.
The loan bears interest at 8%. The company will also pay an annual fee of 4.5% in common shares on each of July 31, 2015 and July 31, 2016.
The investors also received 2.6 million warrants. The warrants are exercisable for common stock at $2.50 per share. The strike price reflects a 6.38% premium to the July 30 closing share price of $2.35.
The company is required to issue 100,000 common shares to the lenders as an extension fee and extend the term of the existing bonus warrants previously issued to the lenders by two years to five years.
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: | Four years
|
| Coupon: | 8%
|
| Warrants: | 2.6 million
|
| Warrant expiration: | Five 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
|
| Revised: | March 14
|
| Stock symbol: | NYSE: UEC
|
| Stock price: | $2.35 at close July 30
|
| Market capitalization: | $154.28 million
|
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