![]() I don't like Denison and at first I wasn't keen at all to receive shares of Denison for my Fission Uranium position, but I do think Dev Randhawa is the right person to lead the company after the merger and I'm willing to bet on the jockey here, of no higher offer is being submitted. Fission Uranium owns a 100M lbs + uranium project in the very prospective Athabasca Basin with an amazingly high average grade, and this merger announcement might force another mid-tier or senior uranium company to put their cards on the table as well. Sometimes you need to bet on the jockey and not on the horse.Īlso keep in mind I wouldn't be surprised if the Denison merger announcement would be just the 'first shot fired'. ![]() ![]() So right now, I'm leaning towards giving him the benefit of the doubt and accept the transaction. But I'm convinced Dev is a 'man with a plan' and he has proven in the past few years he knows what he's doing. If the Denison management team would still be leading the MergeCo after the merger I would very likely have voted against the deal. That tells me Dev Randhawa didn't want a 'quick takeover', but has a larger plan for the Athabasca region. On top of that, he also installed Ross McElroy (also Fission Uranium) as president and COO of the new company. As part of the merger deal, Fission CEO Dev Randhawa would also become the CEO of the New Denison. I don't exactly consider Denison Mines to be a great example in the uranium sector, and I'm not the only one who thinks so. I actually would have preferred if another company would have offered to buy Fission Uranium in an all-cash deal at a nicer buyout premium (+30-35% would have been nice) instead of this merger. To accomplish this, Denison's offer effectively had to include a premium to make sure the final ownership ratio would have been 50/50. ![]() It looks like the ultimate intention was to create a merger of equals, as the shareholders of both companies will own 50% stakes in the new MergeCo. Based on the current Denison share price in Canadian Dollar, this offer would reflect a value of C$1.06 per share of Fission Uranium, approximately 7% higher than Fission's current share price of C$0.99. Fission Uranium has FCU as its ticker symbol and trades on average 650,000 shares per day.ĭenison Mines and Fission Uranium have entered into an agreement to merge both companies, and the New Denison would probably be one of the (if not the) most important uranium exploration companies in Saskatchewan's Athabasca Basin with an extensive land package of almost 2,000 square miles.įission has accepted a deal whereby Denison would issue 1.26 new shares of Denison and pay C$0.0001 in cash per share of Fission Uranium. In this article I will provide my opinion about this merger and discuss whether or not shareholders should accept the offer and vote in favor of the deal.īoth companies are Canadian and Fission has its main listing in Canada on the main board of the Toronto Stock Exchange. A big surprise in the uranium world, as Fission Uranium ( OTCQX:FCUUF) and Denison Mines ( NYSE: DNN) announced their intentions to merge both companies in a 'merger as equals' whereby shareholders of both companies would end up owning 50% of the new entity.
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