The Financial Post reports in its Wednesday, March 16, edition that uranium plays Energy Fuels, Kivalliq Energy and Macusani Yellowcake are trading below where they were when they announced plans to raise money. The Post's Peter Koven writes that
the three companies filed their prospectuses in the days before uranium stocks melted down. Mr. Koven says there is now uncertainty over whether they will be able to close their deals, and if they will have other financing opportunities anytime soon.
Energy Fuels says its financing has not closed and that it is evaluating the situation "almost hourly."
Senior uranium producer Denison Mines closed a bought-deal financing on Tuesday, raising $65-million.
When Denison said Tuesday it successfully sold 18.3 million shares at a price of $3.55 each, it raised a few eyebrows because the stock is now worth $2.34.
In a bought deal, investment banks buy the stock and then place it with institutional clients. The Denison deal involved five banks, with GMP Securities, Cormark Securities and Scotia Capital leading the way.
There is speculation some of the institutions in the financing could have shorted Denison stock to protect themselves.
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