Under the terms of the agreement, the three institutional investors will buy up to 3,380,952 units of the company for gross proceeds of up to $7.1m at a price of $2.10 per unit.
Each unit includes one share of common stock of the company and 0.55 of one share purchase warrant while the units are being offered and sold pursuant to a securities purchase agreement.
Uranium Energy President and CEO Amir Adnani said the financing will support the growth of the company’s South Texas hub-and-spoke strategy and provide 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," Adnani added.
The financing will be used by the company fund exploration and pre-extraction expenditures at the South Texas projects including the Burke Hollow Project as well as for general corporate and working capital purposes.
"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," Adnani continued.
