- UEX Corporation (UEX), has entered an agreement to sell all of its shares to Uranium Energy Corp. for $234.3 million
- Each UEX shareholder will receive 0.0831 of one Uranium Energy share
- This arrangement includes $0.43 per UEX share and a 50 per cent premium.
- Uranium Energy and UEX shareholders will own approximately 86.3 and 13.7 per cent of UEC based on existing outstanding common shares
- UEX Corporation (UEX) is up 24.56 per cent trading at $0.35 per share as of 1:35 p.m. ET
UEX Corporation (UEX), has entered a definitive arrangement agreement to sell all of its shares to Uranium Energy Corp. for close to $234.3 million.
Each UEX shareholder will receive 0.0831 of one Uranium Energy share. This includes approximately $0.43 per UEX share and a 50 per cent premium.
At closing, existing Uranium Energy and UEX shareholders will own approximately 86.3 and 13.7 per cent of UEC based on existing outstanding common shares.
“UEX shareholders will gain substantial exposure to production-ready low-cost U.S. [in situ recovery] mining assets, a substantial physical uranium portfolio, a strong balance sheet and access to capital,” Roger Lemaitre, President and CEO of UEX, said.
The agreement has provisions that allow UEX to consider and accept a superior proposal, subject to a right-to-match period in favour of Uranium Energy. Also included is a termination fee of US$8.25 million to be paid by UEX to UEC if the agreement is terminated in certain specified circumstances.
In addition, Uranium Energy agreed to provide UEX with $5 million through a private placement of UEX shares at a price of $0.43 per UEX share subject to TSX approval.
The arrangement has been unanimously approved by UEX’s board and is expected to close in the third quarter of 2022.
UEX Corporation (UEX) is up 24.56 per cent trading at $0.35 per share as of 1:35 p.m. ET.
