Mr. David Cates reports
URANIUM PARTICIPATION CORPORATION ANNOUNCES UPSIZE TO BOUGHT DEAL FINANCING
Uranium Participation Corp. has entered into an agreement with Cormark Securities Inc. and Cantor Fitzgerald Canada Corp. (the co-lead underwriters), on behalf of a syndicate of underwriters including Canaccord Genuity Corp., Sprott Capital Partners LP, Haywood Securities Inc., Raymond James Ltd., Scotia Capital Inc. and TD Securities Inc., pursuant to which the company and the underwriters have agreed to increase the size of the previously announced $50-million bought deal offering. Pursuant to the upsized deal terms, the underwriters have agreed to purchase, on a bought deal basis, 13,462,000 common shares of the company at a price of $5.20 per share, representing total gross proceeds of $70,002,400. Closing is expected on or about May 26, 2021, and is subject to regulatory approval, including that of the Toronto Stock Exchange.
The underwriters also have an option to purchase up to an additional 2,019,300 shares at the offering price (representing 15 per cent of the offering) on the closing date for market stabilization purposes and to cover overallotments for a period of 10 days after the closing date.
The net proceeds of the offering will be used by the company to finance future purchases of uranium oxide in concentrates (U3O8) and/or uranium hexafluoride (UF6) and for general corporate purposes.
The shares to be issued under the offering will be offered by way of a short form prospectus in each of the provinces of Canada, except Quebec, pursuant to National Instrument 44-101, Short Form Prospectus Distributions, and in the United States on a private placement basis, pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and such other jurisdictions as may be agreed upon by the company and the underwriters, in each case in accordance with all applicable laws and provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction.
About Uranium Participation Corp.
Uranium Participation is a company that invests substantially all of its assets in U3O8 and UF6, with the primary investment objective of achieving appreciation in the value of its uranium holdings through increases in the uranium price. Uranium Participation provides investors with a unique opportunity to gain exposure to the price of uranium without the resource or project risk associated with investing in a traditional mining company. Additional information about Uranium Participation is available on SEDAR and on the company's website.
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