Energy Fuels Inc. (AMEX:UUUU) shares are trading lower on Tuesday after the company said it would engage in a convertible debt offering to raise capital.
What To Know: Energy Fuels’s stock fell more than 8% after the company announced an offering of $550 million of convertible senior notes due in 2031. The stock is off the lows, but still trading lower for the session, last down about 3%, according to Benzinga Pro.
In a press release, the energy and mining company said it will use the money raised from the offering to finance ongoing projects including a uranium processing plant in Utah and a heavy minerals project in Australia.
The company will grant the initial purchasers of the senior notes the option to purchase an additional $82.5 million aggregate principal amount of notes. The initial purchasers will have 13 days from when the notes were first issued to make additional purchases.
Energy Fuels shares have risen 173% over the past year, according to Benzinga Pro. The rally comes amid increased interest in nuclear power, as Energy Fuels produces uranium and other ore needed to produce nuclear power. Renewed agreements between the U.S. and the U.K. to invest in nuclear energy have helped drive shares higher in recent weeks.
UUUU Price Action: Energy Fuel’s stock was down 3.24%, trading at $15.99 at the time of publication, according to Benzinga Pro. Energy Fuels has a 52-week range of $3.20 to $18.78.
Read Next:
Image: Vink Fan /Shutterstock
