(MENAFN- ProactiveInvestors)
Pending U.S. uranium producer () will conduct a 40 for 1 share consolidation of its listed ordinary shares and options ahead of a listing on the NYSE MKT later this year.
Key dates for shareholders for the share consolidation are as follows:
Effective Date: Monday September 28 2015
Record Date: Wednesday September 30 2015
Issue Date: Thursday October 8 2015
A key reason for the share consolidation is the large number of issued ordinary shares of 6936327999.
After the reorganisation this will be reduced to 173408200 ordinary shares.
The consolidation is timely as Peninsula will look to list its shares and options on the NYSE MKT a market designed to support younger high-growth companies at around the time of first uranium production in Wyoming.
U.S. listed peer companies trade at higher multiples in the U.S. and the consolidation will "increase" the share price to a level that enables North American fund managers to gain an exposure to the stock.
Based on the closing price of $0.026 yesterday the consolidation would imply a post consolidation price of $1.04.
Two new uranium sale contracts
Earlier in the month Peninsula executed two forward uranium concentrate sale and purchase contracts with major U.S. power utilities to supply uranium from its Lance Projects in Wyoming.
These committed sales contracts will substantially increase revenue certainty whilst allowing an appropriate level of planned production free for future contracting in an increasing price environment.
These sale agreements further de-risk the cashflow profile for Stage 1.This follows earlier sales contracts struck in previous years believed to be at prices ranging from US$50 - $73/lb U3O8.
U.S power utilities will also need to find additional feed sources for their nuclear reactors and are likely to prefer domestic material such as Lance for security of supply.
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