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Existing Shareholder Prospectus Exemption

A simple method for existing shareholders to quickly and easily increase their investment in U3O8 Corp.

This exemption has recently been adopted by the TSX as a cost-effective way of making a financing available to all of the Company’s shareholders.

Who qualifies?

One of the only prerequisites to participating in this type of financing is that you are a shareholder of the Company.

Limitations  

  • Upper Limit: A key limitation is that each shareholder may only purchase up to $15,000 worth of the Company’s shares in any one year. If, however, a shareholder declares on the subscription form that he or she has obtained advice from a financial advisor there is no ceiling under this exemption.
  • Lower Limit: The Company will probably set a lower limit to investment by each shareholder – $1,000, for example.
  • Residency:
    • This type of financing is open to shareholders who reside in Canada (except Newfoundland & Labrador), and other countries.
    • There is a restriction on the number of residents of the USA who may participate, and if you are a resident of the USA, the subscription document will be slightly different. Please indicate using the contact form labelled “U.S. Shareholder Indication of Interest” that you would like to participate and a subscription document that is specific to the USA will be sent to you.
  • Hold Period: Shares purchased in the financing would have a hold of four months and one day – i.e. the shares can’t be traded until four months after the financing.

Procedure

After obtaining permission to undertake a financing of this type from the TSX, the Company will issue a press release that states the terms of the financing.

How it works…

  • The press release will include the price of the units being sold. A unit will typically consist of a share and a part warrant;
  • The price of the warrants will be stipulated, as will the period of their validity – which is typically two years;
  • The financing would be open typically for a period of two weeks, during which time your completed subscription document must be received and payment made to our lawyers’ escrow account.
  • The subscription document (which is about 30 pages long) will be available on the Company’s website (u3o8corp.com). So as to simplify completion of the subscription document, it will be a fillable PDF document in which the required information will be highlighted and you will be able to type the information directly onto the spaces provided in the form.  You would state how many units you would like to purchase and that information would be sent to legal counsel when you hit “Submit.”
  • Payment would be made by cheque or wire transfer to an escrow account held by legal counsel, and the funds would be drawn from that account into the Company’s account when legal counsel verifies that the share certificates have been issued.

Shareholder Indication of Interest

Please use the following form to let us know you are interested in U3O8 Corp’ ‘Existing Shareholder Prospectus Exemption’.  The subscription document is slightly different for residents of the United States so please be sure to accurately indicate your country of residence and we will send you a link to the appropriate subscription agreement for completion.

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