Yellow Cake raises £26m to invest in uranium

(Sharecast News) - Specialist uranium sector company Yellow Cake announced on Friday that 12 million new ordinary shares had been placed with existing and new institutional investors at a price of £2.15 each, via an accelerated bookbuild.The AIM-traded firm said that due to "strong" investor demand, it agreed with the joint bookrunners to increase the size of the placing to £25.9m from the £22.9m originally proposed.It said the placing was conducted using its existing share authorities, with the placing price representing a discount of 4.0% to its net asset value as at 31 March.As part of the Placing, some of the company's directors had subscribed for 39,086 new ordinary shares at the placing price, the board confirmed.The placing had raised gross proceeds of around £25.9m before expenses, it confirmed, and represented about 14% of the issued ordinary share capital of the company following completion of the placing."We welcome the support from both our existing and new shareholders to enable us to increase the size of our fundraising, and consequently to now purchase 1.175 mmlb of uranium at the firm price of $25.88 per pound," said Yellow Cake chief executive Andre Liebenberg."The recent pullback in the uranium price has provided us with an excellent window to add to our uranium inventory at an attractive price."We are very confident in the long term fundamentals of the uranium market, where a combination of constrained supply, the run-off of long term contracts and growing demand outlook means we remain confident on the outlook for the uranium price."Application had been made for the placing shares to be admitted to trading on AIM, which was expected to become effective at the start of trading on 16 April.