Uranium Resources Drops Pre-Bell
Uranium Resources shares tumbled in Tuesday’s pre-market session after the uranium explorer and developer said it has entered into a securities-purchase agreement with certain institutional investors to sell 4 million shares of its common stock and warrants to purchase 2.2 million shares of its common stock for gross proceeds of $6.0 million.
The securities will be sold in units at a price of $1.50 per unit, with each unit consisting of one share of common stock and a warrant to purchase 0.55 share of common stock at an exercise price of $2.00 per whole share. The per-unit price represents an 18% discount to Monday’s closing price for each share of stock alone.
URRE was down 21% at $1.45 in recent pre-market trading, closer to the low end of its 52-week range of $1.22 to $3.38.
The offering is expected to result in net proceeds to Uranium Resources of approximately $5.4 million. The company said it intends to use the net proceedds to fund ongoing business activities, including an $0.8 million exploration drilling program in South Texas, reclamation work, capital expenditures, working capital and other general corporate purposes.
The warrants will be exercisable for a period of five years beginning on the six-month anniversary of original issuance and ending on the date that is five years after the date of first exercisability. The closing of the offering is expected to take place on or about March 6.