RE:RE:RE:Question to shareholders Why is UEX selling now, after the past year of lagging the market and losing the buy-in or retail from the JCU deal - it was clear that the path forward would be challenged.
UEX has always been too big a portfolio for a small company, sure it has exploration upside, but to get there would be expensive with a lot of dilution. The main knock against UEX is that they don't do enough with the assets, now they are teaming up with a much better funded bigger company that should have near term cash flow and will be able to redirect a lot of money to these projects with minimal or no dilution.
Why this deal, I don't know - I assume they maybe kicked the tires for a few other buyers, maybe they are looking to have a bidding war, but at the end of the day if another major Canadian U company doesn't bid for UEX, then 0.0831 shares of UEC is what UEX is worth. I might not think it is the true value in a normal market, but many U companies are undervalued and if I'm not happy with UEC I can take my 50% premium and go into DML, GXU, FCU, or some other company at 52 week lows. It doesn't matter what the price was a year ago, or a year from now - all that matters is what it is relative to the market today, and what I as an investor can get as a replacement. I'm a big fan of UEX's assets, so I probably will keep the majority of the shares at least for a little bit.
I also really want to see an end to the conspiracy theories, how UEX is owned by Sprott or whatever. It doesn't make any sense based on what we have seen. The narrative is that UEX gave Sprott a sweetheart deal with $0.29 financing and the $0.40 warrant, that warrant looked pretty cheap at the time and went out a long way - I was not overly happy with it either. However, with this deal, if it were to close today - all of those warrants will be automatically closed two years early out of the money. If anything, this deal is to the advantage of the existing shareholders and the expense of warrant holders as the alternative is we sell several years from now with many more shares outstanding. Think what you want of Roger and UEX, there have been missteps for sure, but please stop with the conspiracary theories around Sprott, they just don't make sense when you dig into the actual deal terms.