REG - Yellow Cake PLC - Share Buyback Programme extension

Yellow CakeAnnouncement

04/05/2022 12:00

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RNS Number : 3063K  Yellow Cake PLC  04 May 2022

4 May 2022

 

 

Yellow Cake plc ("Yellow Cake" or the "Company")

Yellow Cake extends timeframe for completion of US$3 million Share Buyback
Programme

Yellow Cake, a specialist company operating in the uranium sector holding
physical uranium for the long term, announces the extension of its share
buyback programme to purchase up to US$3 million of the Company's ordinary
shares of £0.01 pence each ("Ordinary Shares") (the "Programme").

The Programme commenced on 4 April 2022 and ran for an initial period of 30
calendar days. During the Programme, the Company purchased in aggregate
432,331 Ordinary Shares for a total consideration of US$2.3 million, at a
volume weighted average price of 422.7 pence per share and a volume weighted
average discount to net asset value of 11.5%. The Company has now decided to
extend the Programme for an additional 30 calendar days commencing today,
subject to early termination if the Company completes the purchase of US$3
million Ordinary Shares in aggregate from commencement of the Programme.

The Company's shares have traded at a material discount to its underlying net
asset value since mid-January this year. The Yellow Cake Board therefore took
the decision to implement the Programme as a means of effectively acquiring
exposure to uranium at a discount to the commodity spot price. The Programme
forms part of the Company's stated broader strategy to deliver value to its
shareholders.

The Company has 187,740,730 Ordinary Shares in issue, of which 4,501,829 are
held in treasury. Therefore, the total number of Ordinary Shares carrying
voting rights is 183,238,901.

Purchases pursuant to the Programme will be made under the authority the
Company has in place to make market acquisitions in accordance with the Jersey
Companies Law (the "Existing Authority"). The parameters of the Programme will
remain as previously announced on 4 April 2022 and the Company will seek to
make market purchases at a price or prices and volume that the Company
believes to be value-enhancing for the Company's shareholders. As such, it is
the Company's intention that Ordinary Shares only be purchased should the
closing mid-market share price of the Company in any given day represent a
discount of 10% or more to the Company's proforma Net Asset Value at that
time.

The Existing Authority permits the purchase of a maximum of 15,358,435
Ordinary Shares, including purchases made to date under the Programme. The
Programme is being conducted in compliance with the Market Abuse Regulation
(EU) No. 596/2014 and Commission Delegated Regulation (EU) No. 2016/1052, as
they form part of UK law. The Company intends to hold those Ordinary Shares
purchased under the Programme in treasury.

Purchases are being carried out in compliance with the relevant conditions for
trading, restrictions regarding time and volume, disclosure and reporting
obligations, and price conditions. The Ordinary Shares are being repurchased
at a price, excluding expenses, that does not exceed the higher of (i) the
last independent trade or the highest current independent bid on the relevant
trading platform; and (ii) 105 percent of the average market value of an
Ordinary Share as derived from the AIM Appendix to the London Stock Exchange
Daily Official List for the five business days immediately preceding the date
of purchase.

Details of any purchases made under the Programme will continue to be provided
via RNS announcements and published on the Company's website.

 Yellow Cake plc
 Andre Liebenberg, CEO             Carole Whittall, CFO

 Tel: +44 (0) 153 488 5200

 Nominated Adviser and Joint Broker: Canaccord Genuity Limited
 Henry Fitzgerald-O'Connor         James Asensio

 Gordon Hamilton

 Tel: +44 (0) 207 523 8000

 Joint Broker: Berenberg
 Matthew Armitt                    Jennifer Wyllie

 Detlir Elezi

 Tel: +44 (0) 203 207 7800

 Financial Adviser: Bacchus Capital Advisers

 Peter Bacchus                     Richard Allan
 Tel: +44 (0) 203 848 1640

 Investor Relations: Powerscourt

 Peter Ogden                       Molly Melville

 Tel: +44 (0) 7793 858 211

 

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