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UEX Corporation (TSX:UEX, OTCPINK:UEXCF, FWB:UXO) announced the closure of a $2.0 million private placement with Mr. Stephen Sorensen
UEX Corporation (TSX:UEX, OTCPINK:UEXCF, FWB:UXO) announced the closure of a $2.0 million private placement with Mr. Stephen Sorensen as previously announced in the company’s December 22, 2015 news release. Mr. Sorensen purchased 20,000,000 units at a price of $0.10 per unit pursuant to a price protection notice filed with the TSX. Each unit consists of one common share of UEX and one full share purchase warrant. Each warrant gives Mr. Sorensen the right to purchase a common share of UEX at a price of $0.20 per share for a period of two years from the closing of the Offering.
According to the company press release:
Mr. Sorensen, a long time UEX shareholder, beneficially holds directly or indirectly 22 million shares of UEX representing approximately 8.27% of the issued and outstanding shares of UEX.
The Offering was a non-brokered private placement with no commission, broker or finder’s fee.
The Company intends to use the proceeds of the Offering to fund the 2016 $1,750,000 cash payment for the Christie Lake Option due to JCU (Canada) Exploration Company Limited (“JCU”) and to cover the $250,000 payment already made to JCU upon signing of the letter of intent (see UEX’s October 26, 2015 and January 19, 2016 press releases).
Board Chair Colin Macdonald further commented:
On balance, as we move forward into the next uranium cycle, we believe UEX shareholders will be best served by the Company having a share structure that continues to be widely held and in the absence of Cameco’s special shareholder rights. This will allow all shareholders the equal opportunity to benefit from UEX’s growth through the upcoming exploration activities planned for our newly optioned Christie Lake Project.