Uranium Energy Corp To Acquire UEX Corp For $0.43 Per Share In All Stock Deal
Uranium Energy Corp (NYSE: UEC) this morning continued to execute on its strategy of growth by acquisition. The firm has entered into a definitive agreement to acquire UEX Corporation (TSX: UEX), a Canada-focused exploration firm holding a large portfolio of assets.
“This opportunity provides entry into two of Canada’s most prospective uranium districts in Saskatchewan and Nunavut, and cements UEC’s position as not only a leading American uranium mining company but a North American one as well,” said UEC CEO Amir Adnani.
The transaction will take the form of all-stock, and will see UEX shareholders receive 0.0831 shares of UEC for each share held. The ratio, as of June 10, equates to the equivalent of $0,43 per share, which is a roughly 50% premium to the last trading price of the equity. UEX shareholders will own 13.7% of Uranium Energy Corp on a post-closing basis.
For UEC shareholders, the transaction is said to be a positive in that it doubles the uranium resources of the company, while on a pro-forma basis that company will have the largest Americas-focused portfolio of uranium assets globally. UEX currently has a portfolio of 29 different projects which are primarily focused on the Athabasca Basin of Saskatchewan.
Listing among its projects is a 49.1% stake in the Shea Creek project, operated by Orano, which has an undeveloped resource of 67.6 million pounds of U3O8 indicated and 28.1 million pounds U3O8 inferred, as well as full ownership of the Horseshoe-Raven project, which holds 37.4 million pounds U3O8 on an indicated basis. Other projects include 82.8% ownership in Christie Lake, 16.9% in Kiggavik, and 5% Wheeler River, all of which are large development projects.
The transaction requires approval of 66.6% of UEX shareholders, with a shareholders meeting to occur in August. A termination fee of US$8.25 million is also in play.
The transaction is currently slated to close in the third quarter of 2022.
Uranium Energy Corp last traded at $4.02 on the NYSE.
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