URANIUM ROYALTY ANNOUNCES CLOSING OF SUBSCRIPTION RECEIPT PRIVATE PLACEMENT

Rhea-AI Summary

Uranium Royalty (NASDAQ: UROY) closed a private placement of subscription receipts with Uranium Energy Corp. at US$3.64 per receipt for aggregate gross proceeds of US$40.0 million. Funds are escrowed and will convert into common shares upon satisfaction of escrow release conditions and closing of the previously announced Arrangement.

Upon conversion, UEC's ownership would increase to 28,967,375 shares (≈18.40%) of 157,471,518 outstanding shares; if conditions fail or the Arrangement is terminated, receipts expire and subscription funds are returned.

AI-generated analysis. Not financial advice.

Positive

• US$40.0M gross proceeds secured via subscription receipts
• Potential immediate equity conversion into common shares upon escrow release
• UEC commitment increases to ~18.40% ownership upon conversion

Negative

• Subscription funds are held in escrow until Arrangement closing, delaying access to proceeds
• If escrow conditions are unmet, Subscription Receipts expire and funds are returned
• Potential ownership concentration: UEC could hold ~18.40%, raising governance considerations

News Market Reaction – UROY

+0.26%

4 alerts

+0.26% News Effect

+$1M Valuation Impact

$547.86M Market Cap

0.2x Rel. Volume

On the day this news was published, UROY gained 0.26%, reflecting a mild positive market reaction. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $1M to the company's valuation, bringing the market cap to $547.86M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Subscription price: US$3.64 per Subscription Receipt Gross proceeds: US$40 million UEC pre-deal shares: 17,978,364 URC Shares +5 more

8 metrics

Subscription price US$3.64 per Subscription Receipt Private placement to Uranium Energy Corp.

Gross proceeds US$40 million Aggregate gross from Subscription Receipt private placement

UEC pre-deal shares 17,978,364 URC Shares Beneficial ownership before Subscription Receipts, 12.27% stake

UEC pre-deal ownership 12.27% Of 146,592,507 URC Shares outstanding, non-diluted basis

UEC post-conversion shares 28,967,375 URC Shares Assuming conversion of all Subscription Receipts

UEC post-conversion ownership 18.40% Of 157,471,518 URC Shares outstanding, non-diluted basis

Pre-deal share count 146,592,507 URC Shares Issued and outstanding before Subscription Receipt conversion

Post-deal share count 157,471,518 URC Shares Issued and outstanding assuming all Subscription Receipts convert

Market Reality Check

Price: $3.50 Vol: Volume 1,331,112 is below...

low vol

$3.50 Last Close

Volume Volume 1,331,112 is below the 20-day average of 2,000,734, suggesting no outsized trading reaction pre-news. low

Technical Price at 3.80 is trading above the 200-day moving average of 3.73 ahead of the private placement closing.

Peers on Argus

UROY is up 7.44% while key uranium peers are mixed: EU -3.36%, DNN -1.83%, UEC +...

UROY is up 7.44% while key uranium peers are mixed: EU -3.36%, DNN -1.83%, UEC +1.84%, UUUU +0.42%, URG 0%. The stronger move suggests a company-specific reaction to the UEC subscription and Sweetwater-related developments rather than a broad uranium sector trend.

Historical Context

1 past event · Latest: Apr 16 (Positive)

Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Apr 16	Sweetwater combination	Positive	-4.1%	Announced large Sweetwater Royalties combination with cash-and-share consideration.

Pattern Detected

Limited history in the last six months, but the April Sweetwater combination announcement saw a negative price reaction despite strategic expansion terms.

Recent Company History

On Apr 16, 2026, Uranium Royalty announced a transformational combination with Sweetwater Royalties, implying enterprise value of ~US$1.9B and attributable equity of ~US$1.1B to URC, funded partly via cash and equity at US$3.64 per share. The stock moved -4.08% over 24 hours, indicating some market caution around deal structure or financing. Today’s private placement closing with UEC at the same US$3.64 level directly ties into funding that prior transaction.

Market Pulse Summary

This announcement confirms closing of a US$40 million Subscription Receipt private placement at US$3...

Analysis

This announcement confirms closing of a US$40 million Subscription Receipt private placement at US$3.64 with Uranium Energy Corp., funding the Sweetwater combination and increasing UEC’s potential stake from 12.27% to 18.40%. The deal boosts available capital but also lifts the non‑diluted share count to 157,471,518 on conversion. Investors may focus on how this additional capital supports integration of Sweetwater and whether future updates address execution, capital needs, and any further equity issuance plans.

Key Terms

private placement, subscription receipts, escrow, early warning report, +3 more

7 terms

private placement financial

"has closed its previously announced private placement of subscription receipts"

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

subscription receipts financial

"private placement of subscription receipts of the Company (the "Subscription Receipts")"

Subscription receipts are temporary securities sold to investors that act like a receipt for future shares or cash once certain conditions in a financing or acquisition are met; until those conditions are satisfied, the funds are held in trust. Think of them as a ticket you buy today that will convert into the actual product later or get you a refund if the event doesn’t happen. They matter to investors because they provide a way to participate in a deal now while limiting immediate ownership changes and risk until the outcome is confirmed.

escrow financial

"subscription funds will be held in escrow pending satisfaction of the escrow release"

A neutral third party holds money, documents, or assets until both sides in a transaction meet agreed conditions, like a safety deposit box that only opens when everyone fulfills the rules. For investors, escrow reduces risk and increases certainty by ensuring payments or shares are released only when contractual steps are completed, which affects deal timing, legal protection, and the likelihood that a transaction will close as planned.

early warning report regulatory

"UEC has filed an early warning report under the Company's profile on SEDAR+"

An early warning report is a regulatory filing that publicly discloses when an investor or insider has taken a large or potentially influential position in a company's shares or plans significant actions with those shares. It matters to investors because it flags possible shifts in control, takeover attempts, or concentrated influence—like a neighborhood notice that someone is buying several houses on the block—helping readers reassess risk, valuation, and trading strategy.

ni 62-103 regulatory

"in connection with the foregoing acquisition under NI 62-103"

A Canadian securities rule that requires investors who build a large stake in a public company to disclose that holding and their plans for the company. Think of it like a transparency rule that tells other shareholders when someone is quietly accumulating a controlling portion of ownership, so investors can judge the likelihood of a takeover, changes in management or shifts in strategy. It helps markets stay fair and informed.

form 62-103f1 regulatory

"actions listed in paragraphs (a) through (k) of Item 5 of Form 62-103F1"

Form 62-103F1 is a standardized Canadian securities filing that publicly discloses when an individual or group buys or sells a significant stake in a public company, typically when ownership crosses regulatory thresholds that require notice. It matters to investors because it reveals who is gaining or losing influence—like watching a large player move chess pieces—which can signal potential takeovers, voting-power shifts, board changes, or future pressure on the stock price.

sedar+ regulatory

"early warning report under the Company's profile on SEDAR+ accessible at"

SEDAR+ is Canada’s centralized online system where publicly traded companies submit required regulatory documents such as financial reports, prospectuses and disclosure statements. It gives investors a single, searchable place — like a public library or online filing cabinet — to check a company’s official records for transparency, compare performance, and verify material information before making investment decisions.

AI-generated analysis. Not financial advice.

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DESIGNATED NEWS RELEASE

VANCOUVER, BC, May 1, 2026 /PRNewswire/ - Uranium Royalty Corp. (NASDAQ: UROY) (TSX: URC) ("URC" or the "Company") has closed its previously announced private placement of subscription receipts of the Company (the "Subscription Receipts") to Uranium Energy Corp. ("UEC") at a price of US$3.64 per Subscription Receipt, for aggregate gross of US$40 million.

As disclosed in the Company's news release dated April 16, 2026, each Subscription Receipt will automatically convert into one common share in the capital of URC ("URC Shares") upon all escrow release conditions set out in the subscription agreement and the subscription receipt indenture being satisfied, including the conditions precedent to the Company's previously announced arrangement to combine with entities owning a 92% interest in Sweetwater Royalties from funds managed by Orion Resource Partners LP and the Ontario Teachers' Pension Plan (the "Arrangement") and shareholder approval of the Arrangement at the Company's special meeting of shareholders.

The subscription funds will be held in escrow pending satisfaction of the escrow release conditions. Upon such satisfaction, the escrowed funds will be released immediately prior to the closing of the Arrangement and conversion of the Subscription Receipts will occur immediately prior to such closing. In the event that the escrow release conditions are not satisfied prior to the outside date of the Arrangement, or the Arrangement is terminated, the Subscription Receipts will expire and UEC will be entitled to the return of the subscription amount.

Immediately prior to its acquisition of the Subscription Receipts, UEC had beneficial ownership, and control and direction of 17,978,364 URC Shares, representing approximately 12.27% of the 146,592,507 URC Shares issued and outstanding as of the date hereof on a non-diluted basis. Immediately after the acquisition of the Subscription Receipts, and assuming the conversion of all of the Subscription Receipts, UEC beneficially owned, and had control and direction of, 28,967,375 URC Shares (including 10,989,011 URC Shares underlying the Subscription Receipts), representing approximately 18.40% of the 157,471,518 URC Shares issued and outstanding as of such date on a non-diluted basis.

The acquisition of Subscription Receipts by UEC as described above is for investment purposes. UEC will continue to monitor the business, prospects, financial condition and potential capital requirements of the Company. Depending on its evaluation of these and other factors, UEC may from time to time in the future decrease or increase, directly or indirectly, its ownership, control or direction over securities of the Company 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 paragraphs (a) through (k) of Item 5 of Form 62-103F1 – Required Disclosure under the Early Warning Requirements.

UEC has filed an early warning report under the Company's profile on SEDAR+ accessible at www.sedarplus.ca in connection with the foregoing acquisition under NI 62-103. To obtain more information or a copy of such report, please contact Josephine Man, Chief Financial Officer of the UEC, at the contact details listed below.

All ownership percentages herein are based upon the number of outstanding URC Shares as of the date of the acquisition of the Subscription Receipts. UEC's U.S. corporate headquarters address is 500 North Shoreline Boulevard, Suite 800N, Corpus Christi, Texas, 78401 and its Canadian corporate headquarters address is 1188 West Georgia Street, Suite 1830, Vancouver, British Columbia, V6E 4A2. URC's head office is located at 1830 – 1188 West Georgia Street, Suite 1830, Vancouver, British Columbia, V6E 4A2.

About Uranium Royalty Corp.

Uranium Royalty Corp. (URC) is the world's only uranium-focused royalty and streaming company and the only pure-play uranium listed company on the NASDAQ. URC provides investors with uranium commodity price exposure through strategic acquisitions in uranium interests, including royalties, streams, debt and equity in uranium companies, as well as through trading of physical uranium.

Forward-Looking Information

Certain statements in this news release may constitute "forward-looking information", including those regarding the terms of the Offering and the expected completion and use of proceeds thereof, which ultimately remains the subject of the Company's discretion. Forward-looking information includes statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. Forward-looking statements include, but are not limited to statements with respect to the satisfaction of the escrow release conditions in respect of the Subscription Receipts; the anticipated conversion of the Subscription Receipts into URC Shares; the release of escrowed funds;  and the completion and timing of the Arrangement. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking information. Statements constituting forward-looking information reflect the current expectations and beliefs of the Company's management. These statements involve significant uncertainties, known and unknown risks, uncertainties and other factors and, therefore, actual results, performance or achievements of the Company and its industry may be materially different from those implied by such forward-looking statements. They should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from such forward- looking information, including, without limitation, risks inherent to royalty companies, any inability to satisfy the conditions of the Arrangement, market conditions, share price, uranium price volatility and risks related to the operators of the projects underlying the Company's existing and proposed interests and those other risks described in filings with Canadian securities regulators and the U.S. Securities and Exchange Commission. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward-looking information and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.

View original content:https://www.prnewswire.com/news-releases/uranium-royalty-announces-closing-of-subscription-receipt-private-placement-302760477.html

SOURCE Uranium Royalty Corp.

FAQ

What did Uranium Royalty (UROY) announce on May 1, 2026 about the private placement?

They closed a US$40.0 million subscription receipt private placement at US$3.64 per receipt. According to the company, funds are escrowed and will convert to common shares when escrow release conditions and the Arrangement closing are satisfied.

How many UROY shares will Uranium Energy Corp. own after conversion of the Subscription Receipts?

UEC would beneficially own 28,967,375 UROY shares, representing approximately 18.40% of 157,471,518 shares. According to the company, this figure assumes conversion of all Subscription Receipts and the post-closing share count provided.

What happens to the US$40 million escrow if the Arrangement does not close for UROY?

If escrow release conditions are not satisfied or the Arrangement is terminated, the Subscription Receipts expire and UEC is entitled to return of the subscription amount. According to the company, subscription funds will then be returned to UEC.

When will the Subscription Receipts convert into UROY common shares?

Conversion occurs immediately prior to the closing of the Arrangement once all escrow release conditions are satisfied. According to the company, escrowed funds are released immediately before the Arrangement closing and receipts convert immediately prior to that closing.

Does the UEC acquisition of Subscription Receipts signal a change in control of UROY?

UEC increases its stake to about 18.40% upon conversion, but the company describes the purchase as for investment purposes. According to the company, UEC may monitor and adjust its ownership over time depending on its evaluation.