Uranium Royalty closes $40 million private placement with Uranium Energy

Uranium Royalty Corp. (NASDAQ: UROY) (TSX: URC) completed a private placement of subscription receipts to Uranium Energy Corp. at $3.64 per receipt for gross proceeds of $40 million, according to a company statement.

The subscription receipts will automatically convert into common shares upon satisfaction of escrow release conditions, including completion of Uranium Royalty'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 subscription funds will remain in escrow pending satisfaction of the release conditions. If conditions are not met by the outside date or if the arrangement is terminated, the subscription receipts will expire and Uranium Energy will receive a refund of the subscription amount.

Prior to acquiring the subscription receipts, Uranium Energy owned 17,978,364 shares of Uranium Royalty, representing approximately 12.27% of outstanding shares. After the acquisition and assuming conversion of all subscription receipts, Uranium Energy would own 28,967,375 shares, representing approximately 18.40% of the company.

Uranium Energy stated the acquisition is for investment purposes and that it will continue monitoring Uranium Royalty's business and prospects. The company indicated it may adjust its ownership position in the future through various means including market transactions or private agreements.

Uranium Energy filed an early warning report under securities regulations in connection with the acquisition. The company's U.S. headquarters is located in Corpus Christi, Texas, with Canadian headquarters in Vancouver, British Columbia.

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