According to a press release, the uranium mining company intends to undergo an underwritten public offering for shares of URG stock. The offer will also include warrants allowing buyers to acquire more shares of the company’s stock.
To go along with that, Ur-Energy intends to offer an option for underwriters to acquire an additional 15% of the number of securities sold in the offering. Cantor Fitzgerald & Co. is acting as the sole book-running manager for the offering.
Ur-Energy also already has plans for the gross proceeds from the public offering. The company will use them to ramp up operations at its Lost Creek location, as well as maintain operational readiness. It may also use the funds for future acquisitions, strategic transactions, working capital or general corporate purposes.
What This Means For URG Stock
The public offering is dropping URG stock, as investors don’t react well to this type of news. That has to do with the offerings decreasing current stakes in the company. Also, the offering will likely be priced below market value, which would cause a further drop in the shares’ price.
URG stock is down 15.3% in pre-market trading on Thursday!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.