Silex Systems announces $130m institutional placement
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The news: Laser company Silex Systems has received “firm commitments” for an institutional placement worth $130 million to support the commercialisation of the laser company’s uranium enrichment technology.
The numbers: The commitments for the $130 million placement were made at $3.90 per new share. Support came from existing shareholders and a “selection of new, high quality domestic and global institutional investors”.
The placement issue price represents a 15.8% discount to the last closing price of $4.63 on 5 August and a 10.5% discount on the five-day volume weighted average price.
Silex said it expects to remain fully-funded through to the end of FY28 and have cash reserves of about $214.6 million following the placement and share purchase plan.
The context: Most of the proceeds, along with about $69.9 million in cash on hand, will be used to support the commercialisation of the SILEX uranium enrichment technology in the US through its joint venture Global Laser Enrichment (GLE).
Silex will inject $188.2 million to support GLE’s commercialisation program while $26.4 million will be for other isotope enrichment opportunities undertaken by Silex, working capital and other general corporate purposes.
GLE is 51% owned by Silex, with the remaining 49% interest held by commercial lead Cameco Corporation. GLE recently passed a regulatory milestone for its plans to develop a Paducah Laser Enrichment Facility for uranium in Western Kentucky.
The source: ASX
