Energy Fuels dips after boosted $600 mln convertible bonds sale

Energy Fuels

01/10/2025 12:37

** Shares of uranium miner Energy Fuels UUUU.A down 0.5% premarket at $15.27 after above-target capital raise

    ** Lakewood, Colorado-headquartered firm early Weds announced pricing p
    rivate offering of $600 mln 0.75% 6-yr convertible bonds

    ** Offering size increased from $550 mln; i
    nitial conversion price set at $20.34, 32.5% above stock's last close of $15.35

    ** UUUU shares on Tues fell 7.1%, giving co a $3.5 bln market cap

    ** Co plans to use net offering proceeds to fund development expenditures and financing for planned Phase 2 rare earth project at the White Mesa Mill, as well as for Donald heavy mineral sands and rare earth project in Australia, among other uses

** It also intends to use ~$46 mln of proceeds to pay cost of capped calls; initial cap price of $30.70 is double stock's last close

** Through Tues close, UUUU shares have tripled in 2025

    ** Of 3 analysts covering UUUU, 2 rate "buy" and 1 rates "hold"; median PT is $11, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))