June 11, 2024
F3 Uranium Corp. (TSXV:FUU, BUY (S), C$0.60/sh, David A. Talbot) announced that its planned spin-out of F4 Uranium Corp. has gone definitive pursuant to which it will transfer 17 projects (up from the initially-announced 14) in the Athabasca Basin to F4 (read note). In exchange, F3 is set to acquire F4 common shares, which are anticipated to be distributed to existing F3 shareholders on the basis of one F4 share for every ten F3 shares (F3 currently has 473M shares outstanding). The transaction is subject to several approvals, including court approval, TSXV approval and the approval of 2/3rds of F3 shareholders and is expected to be completed in Q3/24. This spin-out should allow F3 to monetize some of its non-core assets in the Athabasca Basin; it has already started to do so with a recent agreement allowing Canadian Goldcamps Corp. (CSE:CAMP, Not Rated) to earn up to a 70% interest in F4’s Murphy Lake uranium project (read notable). Meanwhile, F3 management’s focus will remain on the PLN project, where exploration success, following the recent geological reinterpretation of the B1 Shear (read note), should drive F3’s stock price. Read more
Company Specific Disclosure Details
F3 Uranium Corp. – TSXV:FUU – 1,2,3
- The analyst has visited the head/principal office of the issuer or has viewed its material operations.
- The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.
- In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.
- In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or an analyst involved in the preparation of the research report has provided services other than in the normal course investment advisory or trade execution services to the issuer for remuneration.
- An analyst who prepared or participated in the preparation of this research report has an ownership position (long or short) in, or discretion or control over an account holding, the issuer’s securities, directly or indirectly.
- Red Cloud Securities Inc. and its affiliates collectively beneficially own 1% or more of a class of the issuer’s equity securities.
- A partner, director, officer, employee or agent of Red Cloud Securities Inc. serves as a partner, director, officer or employee of (or in an equivalent advisory capacity to) the issuer.
- Red Cloud Securities Inc. is a market maker in the equity of the issuer.
- There are material conflicts of interest with Red Cloud Securities Inc. or the analyst who prepared or participated in the preparation of the research report, and the issuer.
Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.