IsoEnergy To Buy Out Consolidated Uranium In Share-for-share Deal

Canadian uranium company IsoEnergy Ltd. (ISENF) announced on Wednesday its agreement to acquire the remaining stake in Consolidated Uranium Inc. (CURUF), not already held by the company or its affiliates in a share-for-share merger deal.

Under the deal, each Consolidated Uranium shareholder will receive 0.500 of IsoEnergy share. The exchange ratio is determined based on recent weighted average prices for both companies for the period ended September 26.

The equity value of the combined company is estimated to be around C$903.5 million.

IsoEnergy and Consolidated Uranium expect the merger will be completed in the fourth quarter of 2023, subject to the satisfaction of certain conditions.

Following the merger completion, IsoEnergy and Consolidated Uranium shareholders will own around 70.5 percent and 29.5 percent, respectively, of the new company.

The companies have agreed to merge in order to have a focused production strategy, build for the current uranium market, have a global exploration potential and grow its presence in the uranium market.

In connection with the arrangement, IsoEnergy has also entered into an agreement with Canaccord Genuity Corp., TD Securities Inc. and Eight Capital for a private placement of 4.667 million subscription receipts of IsoEnergy at an issue price of C$4.50 per subscription receipt.

NexGen Energy Ltd., Mega Uranium Ltd. and Energy Fuels Inc. have indicated their intention of subscribing for up to C$21 million of the offering.

The offering is expected to close on or about October 19.

On Tuesday, shares of IsoEnergy closed at C$4.81, down 3.21% on the Toronto Stock and Venture Exchange and shares of Consolidated Uranium closed at $1.91, down 2.05%.

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