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Uranium Energy Plunges 11% After-Hours On $8M Public Offering

Uranium Energy Corp (UEC) has announced an underwritten public offering of units of the company at a price of $1.20 per unit, with each unit made up of one common share
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Uranium Energy Corp (UEC) has announced an underwritten public offering of units of the company at a price of $1.20 per unit, with each unit made up of one common share of the company and one‐half of one common share purchase warrant.

Shares in the US uranium mining and exploration company plunged 11% on the news in Friday’s after-hours trading.

The offering is expected to raise gross proceeds of up to $8 million, and UEC says it will use these funds for exploration and development of its projects and for general corporate and working capital purposes.

Each Warrant will entitle the holder to acquire one common share at a price per ‘warrant share’ of $1.80 exercisable immediately upon issuance and expiring 24 months from closing.

The closing of the offering is expected to occur on or about September 23, 2020.

So far year-to-date, the stock is trading up 39%, with HC Wainwright analyst Heiko Ihle taking a bullish view of Uranium Energy’s prospects.

He recently published a buy rating on the stock with a price target of $3.50, indicating significant upside potential from current levels.

Ihle reiterated his UEC buy rating after the U.S. Department of Commerce (DOC) signed a draft amendment with the Russian state atomic energy company, Rosatom, to reduce America’s dependence on Russian uranium concentrates by up to 75%.

“We maintain our expectation for higher uranium prices in the longer-term, which could be quite pronounced given current global developments” he explained.

These developments include the aforementioned amendment to the RSA and proposed Uranium Reserve, said the analyst.

“Going forward, we believe uranium price increases could warrant several favorable production decisions across UEC’s asset base, which are predominately located within the U.S” Ihle concluded. (See Uranium Energy stock analysis on TipRanks)

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The post Uranium Energy Plunges 11% After-Hours On $8M Public Offering appeared first on TipRanks Financial Blog.

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