Uranium Energy Corp Increases Holdings in Anfield Energy

Rhea-AI Summary

Uranium Energy Corp (UEC) has completed the acquisition of 107,142,857 common shares of Anfield Energy Inc. for $10.46 million ($15 million CAD) at $0.14 CAD per share. Following this acquisition on January 15, 2025, UEC's total ownership in Anfield increased to 203,415,775 shares, representing approximately 17.8% ownership on a non-diluted basis and 24.2% on a partially diluted basis.

Prior to this transaction, UEC owned 96,272,918 Anfield shares and an equal number of warrants exercisable at $0.18 CAD per share until May 12, 2027. The company has agreed not to exercise warrants that would result in becoming a 'Control Person' without TSX Venture Exchange approval. UEC states the shares were acquired for investment purposes and may adjust its ownership position based on future evaluations.

Positive

• Strategic investment of $10.46 million increases UEC's ownership stake to 17.8% (non-diluted)
• Significant warrant position provides potential for increased ownership up to 24.2%

Negative

• None.

Insights

Financial Analyst

UEC's strategic $10.46 million investment in Anfield Energy represents a calculated move to expand its uranium portfolio. The increase from 9.3% to 17.8% ownership (24.2% on partially diluted basis) positions UEC as a significant stakeholder in Anfield's uranium assets. The $0.14 CAD per share purchase price and existing warrants at $0.18 CAD suggest UEC sees upside potential in Anfield's valuation. The careful structuring to remain below control person status while maintaining substantial influence indicates a well-planned strategic investment rather than a takeover attempt.

The timing aligns with the broader uranium market dynamics, where supply constraints and growing nuclear energy demand have pushed uranium prices to multi-year highs. This investment allows UEC to gain additional exposure to uranium assets without the operational complexities of direct asset acquisition. The transaction's structure provides flexibility for UEC to adjust its position based on market conditions and Anfield's performance.

Market Research Analyst

This strategic investment carries broader market implications within the uranium sector consolidation trend. With a $3 billion market cap, UEC's move to increase its Anfield stake signals confidence in smaller uranium players and potential industry consolidation. The transaction structure, using direct share subscription rather than market purchases, minimizes price impact while securing a significant position. The warrant position provides additional strategic optionality through 2027, aligning with expected uranium market dynamics.

For retail investors, this represents a validation of junior uranium companies by larger industry players. The premium positioning without triggering control person status suggests potential for further strategic moves in the sector. The careful compliance with regulatory requirements and transparent disclosure through early warning reports demonstrates professional execution of strategic investment in the uranium sector.

                                                                                         NYSE American: UEC

CORPUS CHRISTI, Texas, Jan. 15, 2025 /PRNewswire/ - Uranium Energy Corp (NYSE American: UEC) (the "Company" or "UEC") announces that it has completed the acquisition of 107,142,857 common shares (the "Anfield Shares") of Anfield Energy Inc. ("Anfield") (TSX-V: AEC) for total consideration of $10.46 million ($15 million Canadian dollars).

The acquisition was completed on January 15, 2025 pursuant to a subscription agreement between the Company and Anfield, whereby the Company subscribed for the Anfield Shares at a price of $0.14 per share (Canadian dollars). Immediately after the acquisition, the Company had beneficial ownership, and control and direction of, a total of 203,415,775 Anfield Shares, representing approximately 17.8% of the outstanding Anfield Shares on a non-diluted basis and approximately 24.2% of the outstanding Anfield Shares on a partially diluted basis after assuming the exercise of all warrants held by the Company.

Immediately prior to the acquisition, the Company beneficially owned, and had control and direction of, 96,272,918 Anfield Shares and 96,272,918 share purchase warrants of Anfield, each exercisable into an Anfield Share at a price of $0.18 (Canadian dollars) per share until May 12, 2027, representing approximately 9.3% of the outstanding Anfield Shares at such time on a non-diluted basis and approximately 17.0% on a partially diluted basis after assuming the exercise of all of warrants held by the Company.

The Anfield Shares were acquired by the Company for investment purposes. The Company will continue to monitor the business, prospects, financial condition and potential capital requirements of Anfield. Depending on its evaluation of these and other factors, the Company may from time to time in the future decrease or increase, directly or indirectly, its ownership, control or direction over securities of Anfield through market transactions, private agreements, subscriptions from treasury or otherwise, or may in the future develop plans or intentions relating to any of the other actions listed in (a) through (k) of Form 62-103F1 – Required Disclosure Under Early Warning Requirements. In connection with the acquisition, the Company has undertaken that it will not exercise Warrants to the extent that it will result in the Company becoming a "Control Person" of Anfield, as defined by the TSX Venture Exchange policies, without written approval of the exchange, including any disinterested shareholder approval required by it. 

The Company has filed an early warning report under Anfield's profile at SEDAR+ at www.sedarplus.ca in connection with the acquisition under Canadian National Instruments 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Requirements. To obtain more information or a copy of such report, please contact Josephine Man, Chief Financial Officer, at the contact details below.

All ownership percentages herein are based upon the number of outstanding Anfield Shares disclosed by Anfield in its Management's Discussion and Analysis for the nine months ended September 30, 2024. The Company's head offices are located at 1030 West Georgia Street, Suite 1830, Vancouver, British Columbia, V6E 2Y3 and at 500 North Shoreline Boulevard, Suite 800N, Corpus Christi, Texas, 78401.  Anfield's head office is located at 4390 Grange Street, Suite 2005, Burnaby, British Columbia V5H 1P6. 

About Uranium Energy Corp

Uranium Energy Corp is America's largest and fastest growing supplier of uranium needed to produce safe, clean, reliable nuclear energy. UEC is advancing the next generation of low-cost, environmentally friendly In-Situ Recovery ("ISR") mining uranium projects in the United States and high-grade conventional projects in Canada. The Company has three hub and spoke platforms in South Texas and Wyoming with a combined licensed production capacity of 12.1 million pounds U₃O₈ per year. These production platforms are anchored by licensed Central Processing Plants ("CPPs") and served by multiple U.S. ISR uranium projects. In August 2024, ISR operations began at the Christensen Ranch project in Wyoming, sending uranium loaded resin to the Irigaray CPP in Wyoming.  The Company has diversified uranium holdings including: (1) a conventional pipeline of high-grade Canadian projects anchored by the worldclass Roughrider project; (2) one of the largest physical uranium portfolios of U.S. warehoused U₃O₈; and (3) a major equity stake in Uranium Royalty Corp., the only royalty company in the sector. The Company's operations are managed by professionals with decades of hands-on nuclear fuel industry experience including the key facets of uranium exploration, development, mining and production.

Stock Exchange Information:
NYSE American: UEC
WKN: AØJDRR
ISN: US916896103

Safe Harbor Statement

Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian securities laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of mineral resources, future mineral resource estimates may vary from historic estimates, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Many of these factors are beyond the Company's ability to control or predict. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the Securities and Exchange Commission. For forward-looking statements in this news release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities.

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SOURCE Uranium Energy Corp

FAQ

How many Anfield Energy shares did UEC acquire in January 2025?

UEC acquired 107,142,857 common shares of Anfield Energy on January 15, 2025.

What is UEC's total ownership percentage in Anfield Energy after the January 2025 acquisition?

UEC owns 17.8% of Anfield Energy on a non-diluted basis and 24.2% on a partially diluted basis after the acquisition.

What was the purchase price per share for UEC's Anfield Energy acquisition?

UEC purchased the Anfield Energy shares at CAD $0.14 per share.

How many warrants does UEC hold in Anfield Energy and at what exercise price?

UEC holds 96,272,918 warrants exercisable at CAD $0.18 per share until May 12, 2027.

What was the total value of UEC's January 2025 investment in Anfield Energy?

The total investment was $10.46 million (CAD $15 million).