Yellow Cake raises $175 million in upsized share placing

LONDON - Yellow Cake plc (AIM:YCA) has successfully placed approximately 23 million new ordinary shares with institutional investors, raising gross proceeds of $175 million, according to a company press release issued Wednesday.

The uranium investment company priced the shares at £5.64 each through an accelerated bookbuild process. Due to strong investor demand, Yellow Cake increased the offering size from the initially proposed $125 million.

The placing shares represent approximately 10.6% of Yellow Cake’s existing issued ordinary share capital prior to the transaction. The company expects the new shares to be admitted to trading on AIM on September 29.

Yellow Cake plans to use the proceeds to exercise its 2025 uranium purchase option under its Framework Agreement with Kazatomprom, with additional funds allocated for opportunistic uranium purchases.

"This capital raise enables us to fully exercise our 2025 uranium purchase option under the Framework Agreement with Kazatomprom, whilst retaining optionality for further uranium purchases," said Andre Liebenberg, Chief Executive Officer of Yellow Cake, in the press release.

The company currently holds 21.68 million pounds of uranium oxide (U3O8) stored in Canada and France. Following completion of planned purchases, Yellow Cake’s holdings will exceed 23 million pounds.

Canaccord Genuity Limited acted as sole bookrunner for the transaction, while Berenberg and Panmure Liberum served as joint co-managers. Bacchus Capital acted as financial adviser.

Yellow Cake is a London-quoted company that offers investors exposure to the uranium spot price through its strategy of buying and holding physical uranium.

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