Uranium Royalty Corp Announces $25 Million Bought Deal, $12 Million Margin Loan

Uranium Royalty Corp (TSXV: URC) last night announced that it has entered into an arrangement to conduct a bought deal financing as well as margin loan, both of which are lead by BMO Capital Markets. Collectively, the financing package is expected to add a total of $37 million to the firms balance sheet.

The bought deal financing will see the company sell a total of 6.1 million common shares at a price per share of $4.10. Gross proceeds from the financing are pegged at $25.0 million, with no warrant being included within the offering. A 15% over-allotment option has also been granted in connection with the financing.

Insiders are expected to take down 19% of the bought deal offering.

In addition to the bought deal offering, Uranium Royalty has received a commitment from the Bank of Montreal for a $12.0 million margin loan. The loan is to bear interest at a rate of US LIBOR plus 5.50% per year, as well as contain certain undisclosed margin requirements.

Proceeds from the financing package are said to be used to fund further purchases of U308 royalty and stream interests, as well as for working capital.

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

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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