Worth a read20 Dec 2024 13:17
If Neo Energy Metals plc’s# (LSE: NEO) mid-price at 2.30pm (UK time) on Monday 23 December is at 1.60p or more, then it is my understanding that the “Sprott Junior Uranium Miners ETF” (NASDAQ:URNJ) would be required to acquire a shareholding in Neo Energy Metals shortly afterwards as part of its semi-annual ETF re-balance, probably somewhere in the range of 0.2% to 0.4% of the ETF’s value, so about £400,000 to £800,000 worth of Neo shares, which would therefore create extra demand for the shares.
The uranium ETF’s re-balancing takes place in December and June each year on the Monday after the third Friday, at the US market open time, therefore at 2.30pm UK time. To qualify for inclusion in the ETF, the market cap would need to be US$30m or more, therefore at 1.60p given the current no of Neo shares in issue and $/£ exchange rate. The ETF provides investors with exposure to miners, exploration and development stage uranium companies