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Queen's Road Capital Announces US$70 million Investment in NexGen Energy Ltd.
Hong Kong, Hong Kong--(Newsfile Corp. - August 31, 2023) - Queen's Road Capital Investment Ltd. ...
About this update from Queen's Road Capital Investment Ltd.
[{"type":"text","content":"Queen's Road Capital Announces US$70 million Investment in NexGen Energy Ltd.Hong Kong, Hong Kong--(Newsfile Corp. - August 31, 2023) - Queen's Road Capital Investment Ltd. (TSX: QRC) (the \"Company\" or \"QRC\") is pleased to announce that it has entered into an agreement with NexGen Energy Ltd. (TSX: NXE) (\"NexGen\") whereby the Company will invest US$70,000,000 in a new NexGen convertible debenture.The convertible debenture will have similar terms to the existing 2020 convertible debenture including a 5-year term and voting alignment but updated to a 9.0% coupon and will be convertible into NexGen common shares at a share price of US$6.76. The interest is payable 6.0% in cash and 3.0% in shares at the 20-day volume weighted average price prior to each interest payment date. Washington H. Soul Pattinson and Company Ltd. has agreed to purchase from QRC 8,700,000 common shares currently held by QRC for US$5.20 per share (or approximately US$45 million). Use of proceeds will be to fund further development and exploration of NexGen's mineral properties and for general corporate purposes.QRC achieves several significant milestones with this investment, including:Largest single investment to-date: at $70 million, this investment is three times the size of the Company's previous largest convertible debt investment, a testament to both the growth of QRC during the 3 years since its inception and to the quality of NexGen as an investee company;First exit of a significant investment: in connection with the investment, the Company will convert the existing 2020 convertible debenture into common shares of NexGen representing the first realisation of a significant investment by QRC since its inception; the US$45 million sale price represents a gain of 200% over the US$15 million initial investment and an IRR of approximately 50% over the duration of the investment;US$149 million convertible debenture portfolio: as a result of this investment, QRC will cross the $100 million threshold of active convertible debenture investments with US$149 million of income generating assets under management; andUS$13+ million in annual interest income: the active convertible debt portfolio will be earning US$13.4 million of interest income annually (or a 9.0% average coupon), which will support future dividend payments to our shareholders.Warren Gilm...