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Nexgen Energy Ltd T.NXE

Alternate Symbol(s):  NXE

NexGen Energy Ltd. is a Canada-based company focused on delivering clean energy fuel for the future. The Company is an exploration and development stage Company, which is engaged in the acquisition, exploration and evaluation and development of uranium properties in Canada. It has a portfolio of highly prospective projects, including the Company's 100% owned Rook I property that is host to the Harpoon, Bow, South Arrow, Arrow Deposit, and the Cannon area. The Rook I property is a development-stage uranium project in Canada, which is located in the uranium rich district of the southwestern area of the Athabasca Basin, located in the premier mining jurisdiction of Saskatchewan. The Rook I project hosts the Harpoon Discovery located approximately 4.7 kilometers (km) northeast of the Arrow Deposit. The Bow Discovery is located approximately 3.7 km northeast along the Patterson Lake Conductor corridor. The South Arrow Discovery is located 400 meters (m) South of the Arrow Deposit.


TSX:NXE - Post by User

Comment by Greendayon Feb 26, 2021 2:05pm
203 Views
Post# 32672708

RE:Doesn't make sense

RE:Doesn't make sense@ investornot - It's possible that NXE was halted because it didn't have all of the regulatory disclosure approvals submitted yet when the deal was announced (guessing only).

Since warrants were not part of the deal, the brokers may believe that NXE was trading near a short term top and instead chose to discount the offering more than they would have if some warrants had a reasonable chance of getting into the money.

Consider NXE's market cap for example.  It was $1.9B.  It has 300M/lbs of uranium but FCU is next door, has a little more than 100M/lbs and had a market cap of $346M.  That's a difference of nearly $1B on an equvalent basis.  So the brokers probably said that they couldn't do a deal at $5.


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