Yellow Cake launches 15m share placing
Uranium group Yellow Cake announced a placing of 15.0m new ordinary shares with existing and new institutional investors at a fixed price of £4.12 per share via an accelerated bookbuild.
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Yellow Cake said on Friday that due to strong investor demand, it has agreed with the joint bookrunners to increase the size of the placing to approximately $75.0m from the approximately $50.0m originally proposed.
The AIM-listed group stated the placing comprised 15.0m new ordinary shares, which will raise gross proceeds of approximately £61.8m, while the shares issued will represent approximately 8.19% of the existing issued ordinary share capital of the company prior to the placing.
Chief executive Andre Liebenberg said: "We have been delighted with the response to our placing and would like to thank shareholders for their continued support. Demand was again considerable, supporting our view that this remains a compelling time to invest in uranium.
"Supply demand fundamentals, the increasing global acceptance of nuclear to support future energy security and the new theme of term market strength, all give us confidence in the long-term momentum in the uranium price."
As of 1120 GMT, Yellow Cake shares were down 3.65% at 411.80p.
Reporting by Iain Gilbert at Sharecast.com