Uranium Royalty has announced its plans to raise $22.9 million through a bought deal financing agreement. This funding will be primarily used for royalty acquisitions and the purchase of physical uranium.
Bought Deal Financing Agreement
The company has entered into an agreement with a syndicate of underwriters, who have agreed to purchase 6.7 million common shares at a price of $3.40 per share. This will be done on a bought-deal basis.
Strong Performance and Closing Price
Over the past year, shares of Uranium Royalty have been performing well, with a growth rate of over 30%. As of Thursday, the closing price stood at $3.58.
Utilization of Proceeds
The proceeds from this financing agreement will be utilized by Uranium Royalty to fund future royalty acquisitions and the purchase of physical uranium.
To cover any over-allotments, the company has also granted its underwriters the option to purchase up to an additional 15% of the offering. This option will remain valid for a period of 30 days following the closing of the original offering.