Business
NexGen Energy Closes US$30 Million Financing with Queen's Road Capital
VANCOUVER, May 28, 2020 /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, May 28, 2020 /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$30 million financing with Queen's Road Capital Investment Ltd. (\"QRC\") totaling US$30 million, comprising US$15 million of common shares of NexGen (\"Placement Shares\") and US$15 million aggregate principal amount of unsecured convertible debentures (the \"Debentures\"). Pursuant to the financing, the Company issued 11,611,667 Placement Shares at a price of C$1.80 per Placement Share. The Debentures carry a 7.5% coupon (the \"Interest\") over a 5-year term (May 27, 2025). The Debentures will be convertible at the holder's option into Common Shares at a conversion price (the \"Conversion Price\") of C$2.34, equal to a 30% premium to the issue price of the Placement Shares. 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 (the \"VWAP\") of the Common Shares on the exchange on which the Common Shares are trading that has the greatest trading volume, ending on the day prior to the date such interest payment is due. The Company will be entitled, on or after the third anniversary of the date of the issuance of the Debentures, at any time that the 20-day VWAP on the TSX exceeds 130% of the Conversion Price, to redeem the Debentures at par plus accrued and unpaid Interest. Including the proceeds from the financing, NexGen now has cash reserves of approximately C$78 million. Proceeds from the financing will be used to the fund the permitting and development of the Company's Rook I Project, which hosts the 100%-owned Arrow Deposit, and for general corporate purposes. Advisors BMO Capital Markets and Fort Capital Partners are acting as financial advisors and lead placement agents to NexGen. About Queen's Road Capital Investment Ltd. Queen's Road Capital Investment Ltd. is becoming a leading financier to the global resource sector. The company is a resource-focused investment company, making investments in privately held and publicly traded resource companies. The company acquires and holds securities for both long-term capital appreciation and short-term gains, with a focus on con...