Uranium Energy Corp (NYSE:UEC) entered into definitive agreements with three institutional investors to purchase an aggregate of up to 3,380,952 of the Company, for gross process of up to $7,100,000, at a price of $2.10 per unit.
As quoted in the press release:
Each Unit is comprised of one share of common stock of the Company and 0.55 of one share purchase warrant, each whole warrant exercisable at a price of $2.60 to purchase one share of common stock of the Company for a three year period from the date of issuance. The closing of the Offering is expected to take place on or about October 23, 2013, subject to satisfaction of customary closing conditions.
Uranium Energy Corp President and CEO, Amir Adnani, said:
We are very pleased to secure this capital injection for the Company on attractive terms that will support the growth of our South Texas hub-and-spoke strategy and provide us with greater financial flexibility. As the recently established $20 million credit facility is earmarked for our Palangana and Goliad projects, including working capital, this new funding will enable us to further our efforts at Burke Hollow and other exploration opportunities within hauling distance of our central Hobson processing facility. With the Hobson plant having a physical capacity of two million pounds per year processing, it is key that we advance the permitting and exploration of our projects to maximize the uranium output when higher uranium prices are realized.