Business
NexGen Energy Closes US$110 Million Financing with CEF Holdings; Appoints Warren Gilman to Board of Directors
VANCOUVER, July 21, 2017 /CNW/ - NexGen Energy Ltd. ("NexGen" or the "Company") (TSX:NXE, NYSE MKT:NXE) is pleased to announce that it has closed its previously
About this update from Nexgen Energy Ltd.
[{"type":"text","content":"VANCOUVER, July 21, 2017 /CNW/ - NexGen Energy Ltd. (\"NexGen\" or the \"Company\") (TSX:NXE, NYSE MKT:NXE) is pleased to announce that it has closed its previously announced US$110 million financing with CEF Holdings Limited (\"CEF\") and affiliates of its shareholders, comprising US$50 million of common shares of NexGen (the \"Placement Shares\") and US$60 million aggregate principal amount of unsecured convertible debentures (the \"New Debentures\"). The Company is also pleased to announce the appointment of Mr. Warren Gilman, Chairman and CEO of CEF, to the Company's Board of Directors (the \"Board\"). Pursuant to the financing, the Company issued 24,146,424 Placement Shares at a price of C$2.70 (US$2.07 at an exchange rate of 1.3060) per Placement Share. The New Debentures carry a 7.5% coupon (the \"Interest\") over a 5-year term and are convertible at the holder's option into common shares of the Company (the \"Common Shares\") at a conversion price (the \"Conversion Price\") of US$2.69 per Common Share. Two-thirds of the Interest (equal to 5% per annum) is payable in cash. One-third of the Interest (equal to 2.5% per annum) is payable in Common Shares issuable at a price equal to the 20-day volume weighted average trading price of the Common Shares on the exchange on which the Common Shares are trading that has the greatest trading volume ending three trading days prior to the date such Interest payment is due. The Company is entitled, on or after July 21, 2020, at any time that the 20-day volume weighted average trading price of the Common Shares on the Toronto Stock Exchange exceeds 130% of the Conversion Price, to redeem the New Debentures at par plus accrued interest. Including the proceeds from the financing, NexGen now has cash reserves of approximately C$200 million. Proceeds from the financing will be used to fund the continuing exploration and development of the Company's SW2 properties (which includes the Rook 1 project) and for general corporate purposes. Board Appointment The Company and CEF have agreed that, for so long as CEF (through its investing entities) hold at least 15% of the Common Shares (on a partially-diluted basis), CEF has the right to nominate one director to the Board. CEF's initial such nominee is Mr. Warren Gilman, Chairman and CEO of CEF, who has been appointed to the Boar...