Shares of Uranium Energy Corp. slumped Tuesday morning after the Canadian uranium company said it sealed definite agreements to sell up to 5 million units of the company at $2 each to two unnamed institutional investors for gross proceeds of $10 million.
Each unit consists of one common share and 0.5 of one share purchase warrant, with each warrant being exercisable at a price of $2.35 to purchase one common share for a three-year period.
The offering is slated to close on or about June 26. Uranium Energy said it plans to use the net proceeds for general corporate and working capital purposes. “We are very pleased to complete this capital raise on attractive terms which will enable the continued growth of our South Texas hub-and-spoke operations and provide us with greater financial flexibility,” said president and CEO Amir Adnani.