Business
Yellow Cake: US$10 million Share Buyback Programme
Yellow Cake: US$10 million Share Buyback Programme.
About this update from Yellow Cake Plc
[{"type":"text","content":"\n \n \n RNS Number : 3197S\n Yellow Cake PLC\n 08 July 2020\n \n \n \n 8 July 2020\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 Yellow Cake begins US$10 million Share Buyback Programme\n \n \n · \n Enlarged share buyback programme to purchase up to US$10 million of the Company's shares\n \n \n · \n Follows sale of 300,000 lb U3O8 at an aggregate price of US$33.20/ lb raising net proceeds of US$9.9 million\n \n \n · \n Yellow Cake retains a total of 9.32 million lbs U3O8 in storage, acquired at an average cost of US$21.68/ lb and with a current market value of approximately US$305.6 million\n \n Yellow Cake, a specialist company operating in the uranium sector with a view to holding physical uranium for the long term, is pleased to announce the initiation of its enlarged share buyback programme to purchase up to US$10 million of the Company's Ordinary Shares over three months, commencing on 8 July 2020 (the \"Programme\"). This follows the sale of 300,000 lb U3O8 at an aggregate price of US$33.20/ lb which raised net proceeds of US$9.9 million.\n By significantly enlarging its share buyback programme, Yellow Cake will be able to continue effectively acquiring exposure to uranium at a discount to the commodity spot price. The Programme forms part of the Company's strategy to deliver value to its shareholders. It replaces the share buyback programme announced on 22 January 2020 to acquire up to US$2 million of the Company's Ordinary Shares (the \"Initial Programme\") which will terminate on the initiation of the Programme.\n Purchases pursuant to the Programme will be made under a combination of the authority the Company has in place to make market acquisitions in accordance with the Jersey Companies Law (the \"Existing Authority\") and, subject to shareholder approval, the renewal of the Existing Authority at the next Annual General Meeting of the Company (the \"Renewed Authority\").\n The Existing Authority permits the purchase of a maximum of 8,821,572 Ordinary Shares at a maximum price (excluding expenses) of the higher of (i) 105 per cent; of the average market value of an Ordinary Share as derived from the AIM Appendix to the London Stock Exchange Daily Official List for the five business days immediately preceding t...