AIM Release

Yellow Cake plc (AIM: YCA), founded and established by Bacchus Capital to be a specialist company operating in the uranium sector with a view to holding physical uranium for the long-term, is pleased to announce that 12,000,000 new Ordinary Shares (the "Placing Shares") have been placed with existing and new institutional investors at a price of £2.15 per share (approximately US$2.81) (the “Placing Price”) via an accelerated bookbuild (the "Placing").

 

Due to strong investor demand, the Company agreed with the Joint Bookrunners to increase the size of the Placing to £25.9 million (approximately US$33.9 million) from the £22.9 million (approximately US$30.0 million) originally proposed. The Placing was conducted utilising the Company’s existing share authorities. The Placing Price represents a discount of 4.0% to the Company’s Net Asset Value (“NAV”) on 31 March 2019.

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As part of the Placing, certain of the Company’s directors have subscribed for 39,086 new Ordinary Shares at the Placing Price. The Placing has raised gross proceeds of approximately £25.9 million (approximately US$33.9 million) before expenses and represents approximately 14 per cent of the issued ordinary share capital of the Company following completion of the Placing.

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Andre Liebenberg, Chief Executive Office of Yellow Cake, commented: "We welcome the support from both our existing and new shareholders to enable us to increase the size of our fundraising, and consequentially to now purchase 1.175 mmlb of uranium at the firm price of US$25.88 per pound. The recent pullback in the uranium price has provided us with an excellent window to add to our uranium inventory at an attractive price. We are very confident in the long term fundamentals of the uranium market, where a combination of constrained supply, the run-off of long term contracts and growing demand outlook means we remain confident on the outlook for the uranium price.”

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Application has been made for the Placing Shares to be admitted to trading on the AIM market of the London Stock Exchange plc (“AIM”) ("Admission"). It is expected that Admission will become effective at commencement of trading on 16 April 2019 and settlement is expected to take place on the same date on a T+2 basis. The Placing is conditional upon, inter alia, Admission becoming effective and the Placing Agreement not being terminated in accordance with its terms.

 

Following Admission of all of the Placing Shares, the total number of shares of the Company in issue will be 88,215,716. Yellow Cake currently holds no shares as treasury shares and therefore, following Admission, the total number of voting shares in the Company will be 88,215,716. Directors' and PDMR participation in the Placing.

 

For full details of the release please visit Yellow Cake's website.