Business
Uranium Energy Corp Expands Physical Uranium Initiative to Purchase 2.1 Million Pounds U3O8 and Announces Financing
CORPUS CHRISTI, Texas, April 6, 2021 /CNW/ - Uranium Energy Corp (NYSE American: UEC) (the "Company" or "UEC") is pleased to report that it has now secured an a
About this update from Uranium Energy Corp.
[{"type":"text","content":" CORPUS CHRISTI, Texas, April 6, 2021 /CNW/ - Uranium Energy Corp (NYSE American: UEC) (the \"Company\" or \"UEC\") is pleased to report that it has now secured an additional 705,000 pounds of U.S. warehoused uranium, with delivery dates out to December 2022. Including the previously announced contracts to acquire 1,400,000 pounds of uranium concentrates, UEC has now entered into additional purchase contracts for a total of 2,105,000 pounds of U3O8 at a volume weighted average price of ~$30 per pound. The Company is also pleased to announce that it has entered into definitive agreements with institutional investors to purchase an aggregate of 3,636,364 common shares of the Company (each, a \"Share\") at a purchase price of $3.30 per Share and for gross proceeds of approximately $12,000,000 in a registered direct offering (the \"Offering\"). The closing of the Offering is expected to occur on or about April 8, 2021, subject to satisfaction of customary closing conditions. Following the closing of the Offering and delivery of contracted drummed uranium, UEC will have more than $110 million of cash, equity and inventory holdings. As previously disclosed, UEC's physical uranium initiative will support three objectives: 1) strengthens the Company's 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 UEC's 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. 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. is acting as the exclusive placement agent for the Offering. The Shares are being offered by the Company pursuant to the Company's effective shelf registration statement on Form S-3 (File No. 333-236571) previously filed with the United States Securities and Exchange Commission (the \"SEC\") and became effective March 3, 2020. The Offering is being made only by means of a prospectus supplement and accompanying prospectus that form a part of the effective shelf registr...