VANCOUVER, BC, Aug. 18, 2021 /CNW/ - Uranium Royalty
Corp. (TSXV: URC) (NASDAQ: UROY) ("URC" or the
"Company") is pleased to announce that it has entered into
an equity distribution agreement (the "Distribution
Agreement") with a syndicate of agents led by BMO Nesbitt Burns
Inc., and including BMO Capital Markets Corp., Canaccord Genuity
Corp., Canaccord Genuity LLC, H.C. Wainwright & Co. LLC,
Paradigm Capital Inc., TD Securities Inc. and TD Securities
(USA) LLC (collectively, the
"Agents"), for an at-the-market equity program (the "ATM
Program").
The Distribution Agreement will allow the Company to distribute
up to US$40 million (or the
equivalent in Canadian dollars) of common shares of the Company
(the "Offered Shares") under the ATM Program. The Offered
Shares will be issued by the Company to the public from time to
time, through the Agents, at the Company's discretion. The Offered
Shares sold under the ATM Program, if any, will be sold at the
prevailing market price at the time of sale.
The Company intends to use the net proceeds of any such sales
under the ATM Program to finance the acquisition of additional
royalties, streams, physical uranium and similar interests and for
working capital.
Under the Distribution Agreement, sales of Offered Shares will
be made by the Agents through "at-the-market distributions" as
defined in National Instrument 44-102 – Shelf Distributions
on the TSX Venture Exchange, Nasdaq Capital Market or any other
trading market for the Offered Shares in Canada or the United
States. The Company is not obligated to make any sales of
Offered Shares under the Distribution Agreement. Unless earlier
terminated by the Company or the Agents as permitted therein, the
Distribution Agreement will terminate upon the earlier of (a) the
date that the aggregate gross sales proceeds of the Offered Shares
sold under the ATM Program reaches the aggregate amount of
US$40 million (or the equivalent in
Canadian dollars); or (b) September 1,
2022.
The ATM Program will become effective upon the filing of a
prospectus supplement to the Company's short form base shelf
prospectus dated June 16, 2021 and
U.S. registration statement on Form F-10 filed June 4, 2021, as amended on June 16, 2021. The prospectus supplement relating
to the ATM Program will be filed shortly with the securities
commissions in each of the provinces and territories of
Canada and with the United States
Securities and Exchange Commission. Copies of the prospectus
supplement, the Distribution Agreement and other relevant documents
will be available on SEDAR at www.sedar.com and EDGAR at
www.sec.gov. Alternatively, the lead agent, BMO Nesbitt Burns Inc.,
will send copies of such documents to investors upon request by
contacting BMO Nesbitt Burns Inc. by mail at Brampton Distribution
Centre, 9195 Torbram Road, Brampton,
Ontario, L6S 6H2, attn: The Data Group of Companies, by
email at attorbramwarehouse@datagroup.ca or by telephone at
905-791-3151 ext. 4312".
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities, nor will there be any
sale of, the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
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 has deep industry knowledge and
expertise 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 future
issuance of Offered Shares sold under the ATM Program and the
intended use of proceeds raised from the ATM Program.
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
that the Company may not sell any of the Offered Shares or may
raise less than the maximum offering amount under the ATM Program;
management has broad discretion in the use of proceeds from the ATM
Program; 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.