enCore Energy completes $115 million convertible notes offering

DALLAS - enCore Energy Corp. (NASDAQ:EU) (TSXV:EU), a uranium company with a market capitalization of $447 million, announced Friday it has closed its previously announced offering of $115 million in 5.50% Convertible Senior Notes due 2030, which included the exercise of a $15 million option granted to initial purchasers.

The initial conversion rate for the notes is 303.9976 common shares per $1,000 principal amount, representing a conversion price of $3.2895 per share. This reflects a 27.5% premium over the August 19 closing price of $2.58 on The Nasdaq Capital Market. According to InvestingPro analysis, the stock appears undervalued at its current trading level.

Net proceeds from the offering totaled approximately $109.8 million after deducting initial purchasers’ discounts and commissions. The company allocated $11.5 million to capped call transactions and approximately $10.6 million to repay outstanding loan amounts, with the remainder intended for general corporate purposes. The company maintains a strong balance sheet with a healthy current ratio of 2.53 and minimal leverage, with debt representing only 4% of equity.

The convertible notes and any common shares issuable upon conversion have not been registered under the Securities Act or qualified by prospectus in Canada, limiting their sale to exempted transactions.

Cantor Fitzgerald & Co. served as sole bookrunner for the offering, with Haywood Securities Inc. acting as co-manager. HudsonWest LLC acted as enCore’s financial advisor.

enCore Energy describes itself as a U.S. uranium company with multiple Central Processing Plants in operation, utilizing in-situ recovery (ISR) technology for uranium extraction. The company’s project pipeline includes developments in South Dakota and Wyoming. InvestingPro subscribers can access 12 additional key insights about enCore’s financial health and market position, along with detailed valuation metrics and analyst forecasts.

This article is based on information from a company press release statement.

In other recent news, enCore Energy Corp. announced the pricing of an upsized $100 million convertible notes offering, which increased from the initially planned $75 million. These 5.50% Convertible Senior Notes are due in 2030 and will bear interest payable semi-annually starting in 2026. Additionally, enCore Energy has expanded its Alta Mesa Uranium Project by acquiring a 5,900-acre land parcel adjacent to its existing operations, potentially extending the facility’s operational life. The acquisition is part of a joint venture with Boss Energy Ltd. Furthermore, enCore Energy promoted Dain McCoig to Chief Operating Officer, following a significant increase in uranium production at the Alta Mesa facility, where extraction rates have more than doubled since March 2025. The company also held its Annual General Meeting, where shareholders approved the election of directors and executive compensation as proposed.

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