Admission to AIM and First Day of Dealings
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.
This announcement is not an offer of securities for subscription or sale in any jurisdiction. Investors should not subscribe for or purchase any transferable securities referred to in this announcement except in compliance with applicable securities laws on the basis of the information in the admission document ("Admission Document") published by the Company in connection with the placing of its ordinary shares ("Ordinary Shares") and the proposed admission of the Ordinary Shares to trading on AIM, a market of the London Stock Exchange plc. A copy of the Admission Document is available for viewing on the Company's website at www.yellowcakeplc.com.
5 July 2018
Yellow Cake plc ("Yellow Cake" or the "Company")
MAJOR INITIATIVE IN URANIUM COMMODITY LAUNCHED BY BACCHUS CAPITAL
Admission to trading on AIM and First Day of Dealings
Yellow Cake, a specialist company operating in the uranium sector with a view to hold long term physical uranium ( "U3O8"), is pleased to announce that its ordinary shares have today been admitted to trading on the AIM market of the London Stock Exchange under the ticker YCA ("Admission") and ISIN JE00BF50RG45.
Yellow Cake was created and incorporated by Bacchus Capital Advisers ("Bacchus Capital") to offer shareholders exposure to the uranium price, without the risks associated with investment in companies that explore for, develop, mine or otherwise process uranium. Additionally, the Company intends to use its expertise in order to exploit a range of expected opportunities connected with owning U3O8; including the trading of U3O8, optimisation of logistics associated with the trading of U3O8, generating revenue from the lending of U3O8, and uranium-based financing initiatives such as commodity streaming and royalties.
Admission details:
· In conjunction with the Admission, the Company has successfully raised gross proceeds of approximately £151 million (c. US$200 million) through an oversubscribed placing and subscription of approximately 76 million ordinary shares (the "Offering" together with the Admission, the "IPO") with the placing taking place at a price of 200 pence per share (the "Issue Price").
· On Admission, the Company will have 76.2 million ordinary shares in issue.
· The Company will utilise the proceeds of the IPO to purchase approximately 8.1 million pounds of U3O8 at a price of US$21.01 per pound under its contract with Kazatomprom (the "Contract Purchase Price"), one of the world's largest, and, understood to be, one of the lowest cost producers of uranium. This acquisition represents one quarter of Kazatomprom's annual production (2016 marketed production, prior to Kazatomprom's recently announced production cuts as reported by the World Nuclear Association) and approximately 5% of 2016 global marketed production.
· Yellow Cake is pleased to note that the spot price is approximately US$22.55 per pound, and is approximately 7.5% higher than the Contract Purchase price, as reported by the Ux Consulting Company, LLC ("UxC") on 25 June 2018.
· In addition to establishing Yellow Cake, Bacchus Capital acted as IPO adviser. Numis Securities Limited ("Numis") is acting as Nominated Adviser and Joint Broker to the Company in respect of the IPO. Joh. Berenberg, Gossler & Co. KG, London Branch ("Berenberg") is acting as Joint Broker to the Company in respect of the IPO. Olivetree Financial Limited and Scott Harris UK Ltd acted as Selling Agents.
Andre Liebenberg, CEO of Yellow Cake, said:
"We are delighted with the outcome of this offering and the strong support from investors for Yellow Cake. Due to an exceptional set of circumstances, uranium is one of the few commodities yet to recover from the recent commodities bear market and we believe that uranium is currently fundamentally and structurally mispriced.
Yellow Cake's long-term supply contract with Kazatomprom has allowed us to secure a highly significant and strategic position in physical uranium, at a competitive price, and to offer that exposure to a potential resurgence in the uranium price to investors, while avoiding direct exposure to exploration, development, mining and processing risk.
I would like to welcome our new shareholders to Yellow Cake."
Peter Bacchus, Chairman & Chief Executive of Bacchus Capital, said:
"The highly successful initial public offering of Yellow Cake demonstrates the depth and breadth of interest emerging in uranium as a commodity, and reflects the U.K. market's continued strong support for the natural resources sector where an opportunity presented is on-theme, clearly articulated and compelling in nature.
Andre and his highly credentialled team will be outstanding stewards of the business and I wish them every success."
ENQUIRIES:
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Yellow Cake plc |
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Andre Liebenberg, CEO |
Carole Whittall, CFO |
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Tel: +44 (0) 153 488 5200 |
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IPO Advisers: Bacchus Capital Advisers Limited |
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Peter Bacchus |
Richard Allan |
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Paul Cahill |
Shea O'Callaghan |
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Tel: +44 (0) 203 848 1640 |
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Nominated Adviser and Joint Broker: Numis Securities Limited |
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John Prior |
Matthew Hasson |
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James Black |
Paul Gillam |
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Alamgir Ahmed |
Henry Slater |
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Tel: +44 (0) 207 260 1000 |
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Joint Broker: Berenberg |
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Matthew Armitt |
Sara MacGrath |
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Charlotte Sutcliffe |
Marie-Agnes Stolberg |
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Tel: +44 (0) 203 207 7800 |
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Investor Relations: Powerscourt |
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Peter Ogden |
Niall Walsh |
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Tel: +44 (0) 779 3 85 8211 |
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IMPORTANT INFORMATION
Numis, which is authorised and regulated by the Financial Conduct Authority, and Berenberg, which is authorised by the German Federal Financial Supervisory Authority and subject to limited regulation in the United Kingdom by the Financial Conduct Authority, are acting only for the Company in connection with the proposed Placing and Admission and are not acting for or advising any other person, or treating any other person as their respective client, in relation thereto and will not be responsible for providing the protections afforded to clients of Numis, or Berenberg or for providing advice to any other person in relation to the matters contained herein. Such persons should seek their own independent legal, investment and tax advice as they see fit. Numis' responsibilities as the Company's nominated adviser under the AIM Rules for Nominated Advisers and AIM Rules for Companies will be owed solely to the London Stock Exchange and not to the Company, to any of its directors or any other person in respect of a decision to subscribe for or otherwise acquire Ordinary Shares in reliance on the Admission Document. Neither Numis nor Berenberg have authorised or approved the contents of, or any part of, this announcement and no representation or warranty, express or implied, is made by Numis and Berenberg or their affiliates as to any of its contents.
In the European Economic Area (the "EEA"), this communication is being directed only to and at persons in member states of the EEA who are qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive, as amended, ("Relevant Persons"). Any person who is not a Relevant Person may not receive this communication and should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons. The term "Prospectus Directive" means Directive 2003/71/EC (as amended) and includes any relevant implementing regulations in each member state of the EEA.
The securities referred to in this communication have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "US Securities Act"), and may not be offered or sold in the United States (as defined in Regulation S under the US Securities Act) except in reliance on an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. There will be no public offering of securities in the United States.
Neither the United States Securities and Exchange Commission ("SEC") nor any securities regulatory body of any state or other jurisdiction of the United States of America, nor any securities regulatory body of any other country or subdivision thereof, has passed on the accuracy or adequacy of the contents of this communication. Any representation to the contrary is unlawful. The Ordinary Shares referred to in this communication will only be offered and sold: (i) outside of the United States in offshore transactions in accordance with Regulation S under the US Securities Act or (ii) within the United States to persons that are reasonably believed to be a "qualified institutional buyer" as defined in Rule 144A under the US Securities Act.
FORWARD LOOKING STATEMENTS
Certain statements contained herein are forward looking statements and are based on current expectations, estimates and projections about the potential returns of the Company and the industry and markets in which the Company will operate, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline", "aims", "may", "targets", "would", "could" and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: uranium price volatility, difficulty in sourcing opportunities to buy or sell U3O8, foreign exchange rates, changes in political and economic conditions, competition from other energy sources, nuclear accident, loss of key personnel or termination of the services agreement with 308 Services Limited, changes in the legal or regulatory environment, insolvency of counterparties to the Company's material contracts or breach of such material contracts by such counterparties. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law or the AIM Rules.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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