Business
Uranium Energy Corp Completes Additional Uranium Purchases in the United States and Announces Financing
CORPUS CHRISTI, Texas, March 17, 2021 /CNW/ - Uranium Energy Corp (NYSE American: UEC, the "Company" or "UEC") is pleased to report that it has secured 800,000
About this update from Uranium Energy Corp.
[{"type":"text","content":" CORPUS CHRISTI, Texas, March 17, 2021 /CNW/ - Uranium Energy Corp (NYSE American: UEC, the \"Company\" or \"UEC\") is pleased to report that it has secured 800,000 pounds of additional U.S. warehoused uranium, consisting of 500,000 pounds for April delivery and 300,000 pounds for December delivery. Including the previously announced acquisition of 400,000 pounds, UEC has now entered into contracts to purchase a total of 1,200,000 pounds of U3O8 at a volume weighted average price of $28.94 per pound. The Company is also pleased to announce that it has entered into definitive agreements with institutional investors to purchase an aggregate of 10,000,000 common shares of the Company (each, a \"Share\") at a purchase price of $3.05 per Share and for gross proceeds of approximately $30,500,000 in a registered direct offering (the \"Offering\"). The closing of the Offering is expected to occur on or about March 19, 2021, subject to satisfaction of customary closing conditions. Amir Adnani, President and CEO, stated: \"We are successfully executing and expanding upon our physical uranium strategy. This initiative will support three objectives: 1) strengthens our balance sheet as uranium prices appreciate; 2) provides strategic inventory to support future marketing efforts with utilities that could complement production and accelerate cashflows; and 3) increases the availability of our Texas and Wyoming production capacity to pursue specific opportunities for uranium of U.S. origin, which may command premium pricing due to the scarcity of domestic uranium production. Following the closing of this offering and delivery of contracted drummed uranium, UEC will have approximately $95 million of cash, equity and inventory holdings, including approximately $35 million of U.S. warehoused uranium.\" The Company is offering and selling the Shares pursuant to a Securities Purchase Agreement dated March 16, 2021. The Company anticipates that the net proceeds from the Offering will be used for additional uranium purchases and for general corporate and working capital purposes. H.C. Wainwright & Co., Haywood Securities Inc. and TD Securities Inc. are acting as placement agents for the Offering. The Shares are being offered by the Company pursuant to a prospectus supplement to the Company's effective shelf registration st...