Physical uranium investors were dealt a bit of a blow this evening with the announcement that the Sprott Physical Uranium Trust (TSX: U.UN) would not be listing on a US big board exchange. The listing application has reportedly been denied by the Securities and Exchange Commission.
The rejection of the application to list on the NYSE is reportedly based on the “Trust not meeting the applicable NYSE Arca listing standards due to the structure of the Trust and the nature of the physical uranium market.” While not stated explicitly, current speculation on social media suggests that this may be due to either the small size of the uranium market, or the redemption ability of the trust.
Commenting on the denied application, John Ciampaglia, CEO of Sprott Asset Management stated, “While we are disappointed by this outcome, the Trust has grown to $3.0 billion in net assets since its inception which confirms our belief that SPUT provides enormous value and transparency to its investors. SPUT has also played an integral role in helping to improve price discovery, liquidity and activity in the spot uranium market. We will continue to operate the Trust in the best interests of unitholders and provide market-leading disclosure and transparency.“
The denied application is said to follow nine months of work by Sprott to achieve a listing on the NYSE Arca. With the denied application from the SEC however, the firm has no intent to further pursue a listing on a US exchange “in the near term.”
The development follows the news earlier this week that the company had closed its acquisition of the Sprott Uranium Miners ETF (NYSE: URNM), which was previously known as the North Shore Global Uranium Mining ETF, which follows the North Shore Global Uranium Mining Index.
Sprott Physical Uranium Trust last traded at $16.59 on the TSX.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.