Business
Exercise of Repurchase Option and Buyback Option
Exercise of Repurchase Option and Buyback Option.
About this update from Yellow Cake Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0425T\n Yellow Cake PLC\n 22 November 2021\n \n \n \n \n 22 November 2021 \n \n \n \n \n \n \n \n \n \n \n \n \n \n Yellow Cake plc (\"Yellow Cake\" or the \"Company\")\n \n \n \n \n Exercise of Kazatomprom Uranium Repurchase Option and Buyback Option\n \n \n \n Yellow Cake, a specialist company operating in the uranium sector with a view to holding physical uranium for the long term, confirms the exercise of the previously announced uranium repurchase option by \n JSC National Atomic Company (\"Kazatomprom\") and the subsequent, related exercise of the previously announced uranium buyback option by the Company. \n \n \n Under an existing arrangement (as previously disclosed in the Company's admission document, annual reports and recent press releases), \n Kazatomprom has an option to repurchase at the uranium spot price (less an aggregate discount of US$6.55 million) up to 25% of the initial purchase volume (of 8,091,385 lb of U3O8) which the Company purchased from Kazatomprom in July 2018 under its ten-year framework agreement with Kazatomprom (the \"Framework Agreement\") (the \"Repurchase Option\"). The Company has a corresponding buyback option to purchase from Kazatomprom, at the prevailing spot price, all or a portion of the volume repurchased by Kazatomprom under the Repurchase Option (the \"Buyback Option\"). Kazatomprom's right to exercise the Repurchase Option arises only once during the term of the Framework Agreement, for a period of 60 days, when certain conditions are met.\n \n \n Following the conditions being met for Kazatomprom to exercise the Repurchase Option, the parties have agreed that: \n \n \n o \n Kazatomprom will exercise the Repurchase Option to repurchase from the Company \n 2,022,846 \n lb of U3O8 at a price of US$43.25/lb, less a total aggregate discount of US$6.55 million. Kazatomprom will take delivery of the \n 2,022,846 \n lb of U3O8 from Yellow Cake on 22 November 2021; and \n \n \n o \n Yellow Cake will exercise the Buyback Option to purchase from Kazatomprom the same quantity of U3O8 at a price of US$43.25/lb. Yellow Cake will take delivery of the \n 2,022,846\n lb of U3O8 from Kazatomprom between March 2022 and April 2022. \n \n \n The net impact of these transactions is expected to be a pay-out by the Company to Kazatomprom of US$6.55 ...