Buy It or Sell It? UEX Corporation (OTCMKTS:UEXCF) (CVE:UEX)
UEX Corporation (OTCMKTS:UEXCF) (CVE:UEX) stock is moving seeing some selling pressure as investors reacted negatively after the news.
Major Trigger:
UEX Corporation Amends Purchase Agreement to Acquire JCU (Canada) Exploration Company, Limited; UEX Signs Letter Agreement to Sell 50% of JCU to Denison Mines Corp.
Key Highlights:
- UEX has signed an agreement (“Amending Agreement”) with Overseas Uranium Resources Development Co., Ltd. (“OURD”) to amend the terms of the purchase agreement (“Share Purchase Agreement”) to acquire 100% ownership of OURD’s wholly-owned subsidiary, JCU (Canada) Exploration Company, Limited (“JCU”), as disclosed in UEX’s April 22, 2021 News Release.
- UEX and OURD have agreed that the purchase price shall be increased to C$41 million and have removed any purchase price adjustment provisions. The financing condition precedent in favour of UEX has been removed and the closing date has been extended to August 3, 2021.
- The transaction remains subject to approval of OURD shareholders at a meeting scheduled for June 18, 2021 in Tokyo.
- UEX is also pleased to announce that it has signed a binding agreement with Denison Mines Corp. (“Denison”) pursuant to which UEX has agreed to sell 50% of the JCU shares to Denison for a purchase price of C$20.5 million (the “UEX Denison Transaction”) following the close of the JCU transaction.
Market Reactions
As of 1:26, UEXCF stock fell by 4% at $0.3885. Total volume so far stood at 2.50 million shares, compared to its average volume of 785K shares. The stock moved within a range of $0.3700 – 0.4531 after opening at $0.4531.
