Uranium Royalty Corp Announces $ 25 Million Purchase and $ 12 Million Margin Loan

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Uranium Royalty Corp (TSXV: URC) last night announced that it has entered into an agreement to perform a bought deal financing as well as a margin loan, both led by BMO Capital Markets. Collectively, the financial package is expected to add a total of $ 37 million to companies’ balance sheets.

The bought deal financing will allow the company to sell a total of 6.1 million common shares at a price per share of $ 4.10. The gross proceeds of the financing are set at $ 25.0 million with no warrants included in the offering. A 15% over-allotment option was also granted as part of the financing.

Insiders are expected to withdraw 19% of the binding offer.

In addition to the firm offer to purchase, Uranium Royalty received a commitment from the Bank of Montreal for a margin loan of $ 12.0 million. The loan must bear interest at the US LIBOR rate plus 5.50% per annum and contain certain undisclosed margin requirements.

The proceeds of the finance package would be used to finance further purchases of U308 royalties and flow interest, as well as for working capital.

Uranium Royalty Corp last traded at $ 4.47 on the TSX Venture Exchange.


Information for this briefing was found through Sedar and the companies mentioned. The author has no title or affiliation related to this organization. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author does not hold any license.



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