Ur-Energy Inc. Announces Pricing of Public Offering of Common Shares

Rhea-AI Summary

Ur-Energy Inc. (NYSE American:URG)(TSX:URE) has announced the pricing of its underwritten public offering of 57,150,000 common shares at $1.05 per share. The company expects to raise approximately $60.0 million in gross proceeds, before deducting underwriting discounts, commissions, and other expenses. Ur-Energy has granted underwriters a 30-day option to purchase up to 8,572,500 additional shares on the same terms. The offering is set to close around July 29, 2024. Cantor is acting as the sole book-running manager, with several co-managers. The company plans to use the net proceeds for working capital, Lost Creek ramp-up, Shirley Basin development, potential acquisitions, and general corporate purposes.

Positive

• Raising approximately $60 million in gross proceeds through public offering
• Funds to be used for working capital and development of key projects
• Potential for additional capital if underwriters exercise their option

Negative

• Dilution of existing shareholders' ownership due to new share issuance
• Increased outstanding shares may put downward pressure on stock price

Insights

Financial Analyst

Ur-Energy's $60 million public offering of common shares is a significant capital raise that warrants attention. The pricing at $1.05 per share represents a substantial dilution for existing shareholders, given the company's recent trading range. This offering increases the outstanding share count by approximately 25%, which is considerable.

The use of proceeds for working capital, project development and potential acquisitions suggests a strategic move to strengthen Ur-Energy's position in the uranium market. The company's focus on ramping up Lost Creek and developing Shirley Basin indicates a push towards increased production capacity, likely in anticipation of improving uranium market conditions.

However, investors should note that this dilution comes at a time when uranium prices have been volatile. The success of this capital raise will largely depend on Ur-Energy's ability to effectively deploy the funds and capitalize on potential market improvements. The involvement of multiple co-managers in the offering suggests broad market interest, which could be seen as a positive signal for the uranium sector as a whole.

Market Research Analyst

Ur-Energy's public offering comes at an interesting juncture in the uranium market. Global efforts to reduce carbon emissions have led to increased interest in nuclear energy, potentially driving long-term demand for uranium. However, the market has been characterized by oversupply and low prices in recent years, making it challenging for producers.

The company's decision to raise capital now could be interpreted as a strategic move to position itself for an anticipated market upturn. The $60 million raise is substantial for a company of Ur-Energy's size and could provide a significant competitive advantage if deployed effectively.

Investors should consider the broader market dynamics, including potential supply constraints from major producers and increasing global interest in nuclear energy as a clean power source. While the dilution is significant, if Ur-Energy can successfully expand production and potentially make strategic acquisitions, it could emerge as a stronger player in a recovering uranium market.

However, the risks are also substantial. If uranium prices remain depressed or if the anticipated market recovery doesn't materialize as quickly as expected, Ur-Energy may struggle to generate returns on this investment, potentially leading to further dilution in the future.

LITTLETON, CO / ACCESSWIRE / July 26, 2024 / Ur-Energy Inc. (NYSE American:URG)(TSX:URE) ("Ur‑Energy") announced today the pricing of its underwritten public offering of 57,150,000 common shares, at a public offering price of $1.05 per common share. Ur-Energy has also granted the underwriters a 30-day option to purchase up to 8,572,500 additional common shares on the same terms. The gross proceeds to Ur-Energy from this offering are expected to be approximately $60.0 million, before deducting the underwriting discounts and commissions and other estimated offering expenses payable by Ur-Energy, and assuming no exercise of the underwriters' option to purchase additional common shares. The offering is expected to close on or about July 29, 2024, subject to satisfaction of customary closing conditions. All of the common shares in the offering are to be sold by Ur-Energy.

Cantor is acting as the sole book-running manager for the offering.

A.G.P./Alliance Global Partners LLC; H.C. Wainwright & Co.; Roth Capital Partners; and Ventum Financial Corp. are acting as co-managers for the offering.

Ur-Energy anticipates using the net proceeds from the offering to supplement working capital for the continued ramp-up at Lost Creek, to support development at Shirley Basin, for possible future acquisitions or other strategic transactions and for working capital and general corporate purposes, although its management will have broad discretion in the application of the net proceeds of the offering. Ur-Energy frequently evaluates acquisition opportunities to expand its portfolio of uranium projects.

The common shares described above are being offered by Ur-Energy pursuant to a shelf registration statement on Form S-3 previously filed with and declared effective by the Securities and Exchange Commission (the "SEC") on July 19, 2023. A preliminary prospectus supplement and the accompanying prospectus relating to the common shares being offered have been filed with the SEC on July 25, 2024 and are available on the SEC's website at http://www.sec.gov. A final prospectus supplement will be filed with the SEC and will be available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement (when available) and accompanying prospectus may be obtained from Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York 10022, or by e-mail at prospectus@cantor.com.

This announcement is neither an offer to sell, nor a solicitation of an offer to buy, any of the common shares and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale is unlawful. Offers will be made only by means of the prospectus supplement and accompanying prospectus forming a part of the effective registration statement.

About Ur-Energy:
Ur-Energy is a uranium mining company operating the Lost Creek in situ recovery uranium facility in south-central Wyoming. Ur-Energy has produced and packaged approximately 2.7 million pounds U₃O₈ from Lost Creek since the commencement of operations. Ur-Energy has all major permits and authorizations to begin construction at Shirley Basin, its second in situ recovery uranium facility in Wyoming and is advancing Shirley Basin construction and development following its March 2024 ‘go' decision for construction of the mine. Ur-Energy awaits the remaining regulatory authorization for the expansion of Lost Creek. Ur‑Energy is engaged in uranium mining, recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the United States. The primary trading market for Ur‑Energy's common shares is on the NYSE American under the symbol "URG." Ur‑Energy's common shares also trade on the Toronto Stock Exchange under the symbol "URE." Ur-Energy's corporate office is in Littleton, Colorado and its registered office is in Ottawa, Ontario.

Cautionary Note Regarding Forward-Looking Statements:
This release may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., closing date of the offering and the use of proceeds from the offering) and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, satisfaction of the conditions to closing of the offering, delays in obtaining required stock exchange or other regulatory approvals, commodity price volatility, the impact of general business and economic conditions, as well as other factors described in the public filings made by Ur-Energy at www.sec.gov and www.sedarplus.ca. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.

For further information, please contact:

John W. Cash, Chairman, CEO and President
+1 720-981-4588, ext. 303
John.Cash@Ur-Energy.com

SOURCE: Ur-Energy Inc.

View the original press release on accesswire.com

FAQ

What is the price per share for Ur-Energy's (URG) public offering?

Ur-Energy Inc. (URG) has priced its public offering at $1.05 per common share.

How many shares is Ur-Energy (URG) offering in its July 2024 public offering?

Ur-Energy Inc. (URG) is offering 57,150,000 common shares in its July 2024 public offering, with an option for underwriters to purchase up to 8,572,500 additional shares.

What is the expected gross proceeds from Ur-Energy's (URG) public offering?

Ur-Energy Inc. (URG) expects to raise approximately $60.0 million in gross proceeds from its public offering, before deducting underwriting discounts and other expenses.

How does Ur-Energy (URG) plan to use the proceeds from its public offering?

Ur-Energy (URG) plans to use the proceeds for working capital, Lost Creek ramp-up, Shirley Basin development, potential acquisitions, and general corporate purposes.