CPE News (2/18/2021) – NexGen Energy Ltd. (TSX/NYSE: NXE) announced that CEF Holdings Limited and its shareholders, the registered holders of the entire US $120 million aggregate principal amount of Convertible Debentures, have provided notice to NexGen and the indenture trustee that they have elected to convert into common shares of NexGen pursuant to the terms of the trust indentures governing the Indentures.
The Indentures consist of US $60 million aggregate principal amount of 7.5% unsecured convertible debentures issued by NexGen in 2016 and the US $60 million aggregate principal amount of 7.5% unsecured convertible debentures issued by NexGen in 2017 both due to mature on July 22, 2022. the Indentures are convertible into common shares based on the conversion price of US $2.3261 for the 2016 debentures, and US $2.6919 for the 2017 debentures.
Upon settlement of the conversion, CEF will increase its holding from 8.63% to approximately 18.7% of the issued and outstanding common shares of NexGen Energy, the only holder controlling 10% or more of the outstanding shares.
Vancouver based NexGen is focusing on the acquisition, exploration and development of Canadian uranium projects. NexGen owns a portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Deposit discovered in February 2014 which is in development.
CEF Holdings Limited is owned 50% by CK Hutchison Holdings Ltd. (SEHK: 1) and 50% by the Canadian Imperial Bank of Commerce (TSX/NYSE: CM).
photo credit: NexGen
News Release
NexGen Announces Conversion of US$120 Million Convertible Debentures into Equity
VANCOUVER, BC, Feb. 18, 2021 /CNW/ – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX: NXE) (NYSE: NXE) is pleased to announce that the registered holders of the entire US$120 million aggregate principal amount of Convertible Debentures (or, the “Indentures”) have provided notice to NexGen and the indenture trustee that they have elected to convert into common shares of NexGen (“Common Shares”) pursuant to the terms of the trust indentures governing the Indentures. The registered holders of the Indentures are affiliates of CEF Holdings Limited and its shareholders (“CEF”). The Indentures consist of US$60 million aggregate principal amount of 7.5% unsecured convertible debentures issued by the Company in 2016 (the “2016 Debentures”) and the US$60 million aggregate principal amount of 7.5% unsecured convertible debentures issued by the Company in 2017 (the “2017 Debentures”) both due to mature on July 22, 2022.
Leigh Curyer, Chief Executive Officer, commented: “We are very pleased CEF have elected to convert the Indentures early totalling US$120 million into equity. The structure of the 2016/2017 Indentures have been extremely effective from a financing and strategic perspective which has facilitated NexGen’s development of the Rook I Project in an optimal manner and sets the stage for NexGen to be a significant producer of clean energy fuel.”
Conversion
Under the terms, the Indentures are convertible into Common Shares based on the conversion price of US$2.3261 for the 2016, and US$2.6919 the 2017 Debentures. On settlement of the conversion, CEF will move from 8.7% to ~18.7% of the issued and outstanding Common Shares of NexGen Energy Ltd.
Other Activities
As at the date of this announcement and post settlement of the debenture conversion, the Company has cash-on-hand of ~$55 million;
The Company is in the final stages of completing the Rook I Feasibility Study with results scheduled to be released imminently.
About NexGen
NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production. NexGen owns a portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Deposit discovered in February 2014 which is in development.
SOURCE NexGen Energy Ltd.
For further information: Leigh Curyer, Chief Executive Officer, NexGen Energy Ltd., +1 604 428 4112, lcuryer@nexgenenergy.ca, www.nexgenenergy.ca; Travis McPherson, Senior Vice President, Corporate Development, NexGen Energy Ltd., +1 604 428 4112, tmcpherson@nexgenenergy.ca, http://www.nexgenenergy.ca