Uranium Resources recently announced preliminary results for its nontransferable rights offering, which expired on Feb. 27 at 5 p.m. ET. The company anticipates that it will receive gross proceeds of about $8.7 million from the shareholder rights offering, before expenses. This will be used both to satisfy a $5 million bridge loan and for general working capital.
It is anticipated that 3.4 million additional shares of URRE common stock will be issued as a result of the rights offering, representing around 67% of the maximum number of common shares available under the rights offering. Based on the subscription for shares received, the results remain subject to receipt of final subscription agreements, according to the terms of the rights offering.
Pursuant to the previously announced standby purchase agreement between URRE and Resources Capital Fund V L.P. (RCF), RCF exercised rights to purchase around 1.9 million shares of URRE common stock as part of the rights offering. RCF will offset the purchase against $5 million in borrowings owed by URI under a bridge loan agreement, satisfying its $5 million subscription. Excluding that $5 million, URRE anticipates that it will receive about $3.7 million in net proceeds from the rights offering.
The company anticipates that the rights offering will close on March 5, accommodating those who exercised their rights using guaranteed delivery procedures. URRE plans to mail new common shares acquired through the rights offering to registered subscribers within three business days of the scheduled closing. After the results have been determined, shareholders taking part in the over-subscription privilege will be notified individually regarding their proportionate allocation of over-subscription shares.
For more information about Uranium Resources, visit www.uraniumresources.com
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