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Highlights:
- Completes the C$37 million
financing package comprised of a C$25
million bought deal offering and previously announced
C$12 million margin loan
facility
- As of May 20, 2021 , the
Company has approximately C$70
million in cash, equity and inventory holdings and
C$6 million (US$5 million) available for drawdown under its
margin loan facilty
VANCOUVER, BC, May 20, 2021 /CNW/ - Uranium Royalty
Corp. (TSXV: URC) (NASDAQ: UROY) ("URC" or the
"Company") is pleased to announce that it has completed its
previously announced bought deal offering (the "Offering")
of common shares of the Company, resulting in aggregate gross
proceeds of C$25,010,000. The
Offering was conducted by way of a short form prospectus dated
May 18, 2021, through a syndicate of
underwriters led by BMO Nesbitt Burns Inc., and included Canaccord
Genuity Corp., H.C. Wainwright & Co., LLC, TD Securities Inc.
and Paradigm Capital Inc. (collectively, the
"Underwriters"), pursuant to which the Company issued a
total of 6,100,000 common shares (the "Offered Shares") at a
price of C$4.10 per Offered Share
(the "Offering Price").
Following the closing of the Offering, the Company has
approximately C$70 million in cash,
equity and inventory holdings and C$6
million (US$5 million)
available for drawdown under the margin loan facility.
The Company intends to use the net proceeds of the Offering to
fund future purchases of royalties, stream and similar interests
and purchases of physical uranium, and for working capital.
Uranium Energy Corp., an insider of the Company, purchased
1,000,000 Offered Shares in order to maintain its proportionate
ownership interest in the Company.
The Company has granted the Underwriters an option, exercisable
at the Offering Price for a period of 30 days following the closing
of the Offering, to purchase up to an additional 15% of the number
of Offered Shares sold under the Offering to cover over-allotments,
if any, and for market stabilization purposes.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered
or sold in the United States
absent registration or an applicable exemption from the
registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
The Company previously announced that it had entered into a
C$12 million margin loan facility
with Bank of Montreal. The
facility is subject to an interest rate of 3-month USD LIBOR plus
5.50% per annum and customary margin requirements, and is secured
by a pledge of all the ordinary shares of Yellow Cake plc held by
the Company. The facility matures on the earlier of: (i)
May 5, 2023; or (ii) the early
payment date on which the outstanding loan amount is fully and
finally paid and is subject to customary margin requirements, with
margin calls being triggered in the event, among other things, that
the loan-to-value ratio is at or above 50%.
About Uranium Royalty Corp.
Uranium Royalty Corp. (URC) is a pure-play uranium royalty
company focused on gaining exposure to uranium prices by making
strategic investments in uranium interests, including royalties,
streams, debt and equity investments in uranium companies, as well
as through holdings of physical uranium. The Company recognizes the
inherent cyclicality of valuations based on uranium prices,
including the impact of such cyclicality on the availability of
capital within the uranium sector and the current historically low
uranium pricing environment. URC intends to execute on its strategy
by leveraging the deep industry knowledge and expertise of its
management team and the Board to identify and evaluate investment
opportunities in the uranium industry. The Company's management and
the Board include individuals with decades of combined experience
in the uranium and nuclear energy sectors, including specific
expertise in mine finance, project identification and evaluation,
mine development and uranium sales and trading.
Forward Looking Information
Certain statements in this news release may constitute
"forward-looking information", including those regarding the
intended use of proceeds raised from the Offering. Forward-looking
information includes statements that address or discuss activities,
events or developments that the Company expects or anticipates may
occur in the future. When used in this news release, words such as
"estimates", "expects", "plans", "anticipates", "will", "believes",
"intends" "should", "could", "may" and other similar terminology
are intended to identify such forward-looking information.
Statements constituting forward-looking information reflect the
current expectations and beliefs of the Company's management. These
statements involve significant uncertainties, known and unknown
risks, uncertainties and other factors and, therefore, actual
results, performance or achievements of the Company and its
industry may be materially different from those implied by such
forward-looking statements. They should not be read as a guarantee
of future performance or results, and will not necessarily be an
accurate indication of whether or not such results will be
achieved. A number of factors could cause actual results to differ
materially from such forward-looking information, including,
without limitation, risks inherent to royalty companies, uranium
price volatility, risks related to the operators of the projects
underlying the Company's existing and proposed interests and those
other risks described in filings with Canadian securities
regulators and the U.S. Securities and Exchange Commission. These
risks, as well as others, could cause actual results and events to
vary significantly. Accordingly, readers should exercise caution in
relying upon forward-looking information and the Company undertakes
no obligation to publicly revise them to reflect subsequent events
or circumstances, except as required by law.
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Uranium Royalty Corp.