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Uranium Energy Corp. (NYSEMKT: UEC) announced on Monday that due to increased demand, its underwriters have agreed to purchase 12.5 million units of the company at a price of $1.20 per unit under the previously arranged public offering.
This would see the company raise gross proceeds of $15 million instead of $8 million as originally announced last Friday. The offering is expected to close on Wednesday.
Each unit will still consist of one common share of the company and one-half of one common share purchase warrant. Each full warrant will entitle its holder to an additional common share at an exercise price of $1.80 per share immediately upon issuance and expiring 24 months from closing of the offering.
UEC’s main operations include the Palagana, Burke Hollow and Goliad ISR projects in southern Texas
“We are pleased with the substantial level of interest for this offering and appreciate the strong endorsement from our existing and new shareholders,” UEC president and CEO Amir Adnani stated in a press release.
“UEC’s fully permitted, low cost, in-situ-recovery (ISR) portfolio provides for a distinct advantage to supply US production that is globally competitive. The improved uranium market conditions we’ve witnessed in 2020, with uranium prices reaching a four-year high, bodes well for the future of our ISR project pipeline,” he added.
UEC intends to use net proceeds of the offering to fund exploration and development expenditures, as well as for general corporate and working capital purposes.
UEC’s main operations including the Palagana, Burke Hollow and Goliad ISR projects are located in southern Texas, anchored by its fully licensed Hobson processing facility. The company also controls the Reno Creek project in Wyoming, considered the largest permitted, pre-construction ISR uranium project in the US.
Shares of UEC plunged 18.6% at market close Monday on news of the upsized public offering. The company’s market capitalization now stands at C$193.4 million.
