It's all done off the standard public market. The daily tallies on the TSX / NYSE / etc are shares that change hands on our side. The stuff that goes on from the corporate side doesn't show up here.
ubug, thanks for your perspective. I'm just a long-term holder who thinks in a couple of years URZ will be doing very well or be bought out. I got slaughtered by the earthquake, like a lot of other folks. If all those 10 million shares are already bought, how come we don't see that volume in the daily tallies. Is there a secret list that accounts for the issuance that we retail-types don't see? Please explain.
I said they will start to unload...no one said they were dumping all their paper dude! These guys made a bundle on fees and get a half warrant for free....if they sell at 1.25 they are waaaaaay ahead of the game. Selling here isn't bad either when you do the math.
My point is we got played again.
By the way did you happen to notice that they screwed up the Russell listing? Half baked promo campaign that didn't work to get the share price up. Had they done it right we would have been added, the funds would have bought, they could've done the raise higher and we wouldn't be looking at a dollar a share!
Dennis Higgs is a greedy self serving little twirp that don't care about you or me just the houses and brokers that are getting greased in these financings.
Brutal just brutal!
You realise that the average trading volume over the last several months has been somewhere in the range of 200-400k shares per day, right?
If you think these buyers were purchasing 10 MILLION shares, at $1.25, just for the sake of unloading them at $1.20 in order to keep their free warrants exercisable at $1.60, you'd have to be insane.
That would drive the share price down very rapidly - which means they are losing significant money by doing so. More likely is they will just hold those shares until the price goes up. Clearly they are betting that the price will recover, and they will gradually sell them off, or just hold on to them in the hope that it keeps going up.
And we are trading .05 below the prospectus price....we got reamed again folks. Sponsoring houses will now start to unload their prospectus paper (just like they sold it down and shorted ahead of the financing announcement). They keep the free warrants and LOL all the way to the bank while we get left holding the bag.
Thank you Dennis Higgs!
Why do you keep seeing the glass half full. URZ does not have enough contracts in place. URZ cannot sell at spot. It is not in the best interest of URZ to place additional contracts in today's environment. Recovery of U pricing is at least 1 year away if not much longer. Japan is not going to make any difference in demand FOR YEARS.
I am still calling for URG, URZ, DNN, and UEC to fall below $1 per share. URG and UEC both need to dilute shareholders further. DNN is probably not far behind, but I do not follow them closely enough to know their cash on hand and cash burn.
The URZ capital raise is another warning sign of the poor condition in this sector. There are only two reasons to own URZ right now. One, hope for a bounce to close the gap back to $1.40ish and sell immediately. Two, hope for a pop on Japan restarts that will fade very quickly which also means sell after a few days on the news.
No way am I holding any U stocks right now because I say we are at least 2.5 months away from a first restart in Japan. We all should be able to buy lower before the news.
I wrote a very nice, in depth response to the article and it was deleted for some reason.
Did anyone get to read it before it disappeared? Very frustrating. I even thanked you Justice for the nice find.
Yahoo message boards are becoming less and less reliable to have discussions because so many posts are being deleted now AND you cannot bump old posts or cannot even tell if somebody responded in a thread unless you keep looking back through all of them. On a board where there are 100 posts a day, it is a lost cause.
Well, may have been a mistake, but I've decided to pick a few shares up. Bought in at the end of the trading day at the low of $1.20. I think I'm gonna just play this as a day-trader though, and sell once it goes back up to the $1.25 range. May even sell cheaper than that, and just pocket the few hundred bucks. We'll see...
There's a couple of very useful points that the interview has provided:
"one contract determines the uranium sales price using a combination of spot and term prices, with a floor and ceiling (today we would be selling at the floor, which is significantly higher than the current spot price); one contract has a base price with fixed escalation; and one contract is base price plus an inflation adjusted escalator" - so this confirms what we had previously suspected regarding the floor. I expect that, since they negotiated the contract in 2009, we are looking at a floor somewhere around $40 - the price of uranium during 2009 was between $40 and $50.
"Instead of producing your own uranium to sell into contracts, why not just buy spot uranium and deliver that into the contracts?
Under the terms of our agreements with the utilities, Uranerz is not allowed to do this under any of the contracts." -- so, in other words, in order to make money, they have to produce, even if they are selling at a loss. on the plus side, at least part of their contracts have floors. on the minus side, it means that, if the uranium price doesn't start going up, the company is dead as a duck once they have to start selling the uranium to fulfill their contracts which don't have the floors.
"Yes; we are always on the lookout for quality uranium properties or for companies that have quality uranium properties. Under the right technical and business parameters, Uranerz would consider acquisitions, mergers and joint ventures to expand its portfolio of quality uranium properties; preferably that are mineable by the ISR mining method in jurisdictions of low political risk." -- so yeah, they have the poison pill to prevent getting bought out by the bigger guys, but they do have some degree of interest in merging anyway - so could be good news if the bigger guys decide they don't want to spend the time/money to get new mines operating.
I know you're trying to be funny BUT the company (spelled Dennis Higgs) doesn't take advice...even when it's good advice. Arrogant egotistical little man is ruining this company and shareholder value.
Hopefully this silly financing closes quickly and we can move the heck on.
trading @ 1.23 despite folks paying 1.25 for new shares........because......... the new shares came with 1/2 warrant which has value to it. hence the 1.25 was for one share of urz plus 1/2 warrant. folks now who buy at 1.23 only get the one share of urz and NO warrant.
the entire sale is already placed. onward and upwards :)
This is from the press release, which you should definitely read if you are a share holder:
The Company has been informed by the Lead Agents that the books are now closed. Closing of the Offering is anticipated to take place on July 25, 2014, subject to satisfaction of the conditions to closing set forth in an Agency Agreement, including receipt of approval of the NYSE MKT LLC and the Toronto Stock Exchange.
Unless something very odd happens, the stock will be depressed below the offer value of $1.25 until after Friday. I am still looking for $1.20 to buy some more. The warrants should also be noted in future company presentations in which they list the max shares available.
King, Thanks for the update. What's a 4mm? I really am a greenhorn. If all the shares are already sold, why is URZ trading at 1.23?
This offering is not available to you and I and it is likely already done. It happens quickly. Look for a press release any day now stating that the offering has closed. So, just assume that the new shares already exist and are tradable UNLESS there was some restriction imposed on trading those shares (doubtful.) The warrants amount to 4mm or maybe 4.8mm considering the over allotment. I do not expect that the warrants will be listed for trading.