Uranium Energy Corp. (NYSEMKT:UEC) announced that alongside its lenders, Sprott Resource Lending Partnership and CEF Limited, have agreed to extend the previously announced $20,000,000 senior secured credit facility by deferring required principal payments to February 1, 2019 and by extending the maturity date of the Credit Facility to January 1, 2020.
According to the press release:
The interest rate for the Credit Facility remains unchanged at 8%. The Company will pay an extension fee to the Lenders in the form of common shares equal to less than 1.0% dilution of the total shares outstanding, which is approximately 959,163 shares. The exercise price under the existing warrants previously issued to the Lenders has been lowered from $2.50 to $1.35 with a new expiry date ofJanuary 30, 2020 to match the new maturity date of the Credit Facility.
Rick Rule, Director, President and Chief Executive Officer of Sprott US Holdings, Inc., stated:
We are pleased to extend our long term credit facility to UEC. The company has a proven management team that has developed and operated US uranium assets in difficult market conditions. We believe these conditions will improve markedly over time. Investors should note that the US has the largest current nuclear fleet in the world, and domestically we produce about 7% of what we consume.
Click here to view the full press release.
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