UEX Corp UEXCF

RE:The transaction

[invest4fun]

NewCoreFish wrote: The Transaction Through this transaction, UEX will acquire 100% of the shares of JCU from OURD by making cash payments of up to C$12.5 million and assuming JCUs existing liabilities. UEXs cash payments will consist of C$10 million on closing and up to C$2.5 million which is expected to be paid within 45 days of the closing date, subject to adjustment based upon JCUs actual working capital on the closing date. It is anticipated that JCU will have cash in its treasury after closing which will be retained by JCU under UEXs management. Both UEX and OURD Board of Directors have voted in favour of this transaction. The transaction is subject to approval of OURD shareholders at a meeting scheduled for June 18, 2021. OURD is a private Japanese company with 29 shareholders comprised of some of the major companies in Japan. Closing is subject to UEX securing the necessary purchase financing and obtaining any required regulatory approvals. The transaction is expected to close on or prior to June 29, 2021. UEX has committed to retaining JCU as a corporate subsidiary in order for JCU to meet its joint venture commitments.

"It is anticipated that JCU will have cash in its treasury after closing which will be retained by JCU under UEXs management."

This is the most important sentence in that whole paragraph. It means UEX is merely shifting exploration funds into JCU which, under UEX's control, can be used... not sent back to Japan.