- NexGen Energy (TSX:NXE) has announced a shares offer totalling C$42 million
- The company will offer $21 million in common shares and $21 million in convertible shares
- The convertible shares will be available at a price of $2.34 each
- The company will offer common shares at $1.80 per share, a 5 per cent premium on the 20 day trading average
- NexGen Energy (NXE) is up 1 per cent and trading for $1.99 per share, with a $716 million market cap
NexGen Energy (TSX:NXE) has announced a funding package with Queens Road Capital Investment (TSXV:QRC) totalling C$42 million.
The funding package will consist of $21 million of common shares of NexGen, and $21 million of unsecured convertible debt. The convertible option shares available will trade at $2.34 per share.
The $21 million share placement will result in NexGen issuing approximately 11.6 million shares at C$1.80 per share. This is a 5 per cent premium on the 20 day trading average for NexGen shares.
The company’s debt will be convertible at the holders option into approximately 8.9 million shares of NexGen.
The market has reacted positively, with company shares trading up slightly for the day. This is despite the 20-odd million share dilution which the offer announced.
The oil and gas sector has taken significant hits from the coronavirus global shutdown and simultaneous oil price trade war. North American energy companies have especially felt the impacts of the ongoing economic volatility.
For this reason, NexGen is something of an outlier. Its current share price now outperforms where it was in Mach before the global oil collapse.
NexGen’s CEO, Leigh Curyer, said the company welcomes QRC as a new shareholder, as a “leading financier to the global resources sector.”
“QRC complements NexGen’s existing well respected shareholder base of longterm committed supporters of the company.
“NexGen’s commitment to deliver highly positive impacts to as many people as possible, covering economic, health, and community government through the optimal development of the Arrow Project, particularly in these times, is reflective of its leading organisational culture,” Leigh said.
For their part, QRC’s CEO Waren Gilman said he was excited about the investment in NexGen.
“QRC seeks to invest in world-class mineral resources assets in safe jurisdictions. The Arrow Project, as the world’s largest to-be-developed high grade uranium deposit in Saskatchewan, Canada meets that criteria,” he said.
NexGen Energy (TSX:NXE) is up 1 per cent and trading for $1.99 per share at 1:31pm EDT.