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.
Simply Wall St has no position in any stocks mentioned.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.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused analysis driven by fundamental data. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Fission Uranium's board and the CEO’s background. Historical Track Record: What has Fission Uranium's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. We've also compiled a list of essential aspects you should look at: This article is not intended to be a comprehensive analysis on Fission Uranium, so if you are interested in understanding the company at a deeper level, take a look at Fission Uranium's company page on Simply Wall St. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 77% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
So, the company is predicted to breakeven approximately 2 years from today. They anticipate the company to incur a final loss in 2023, before generating positive profits of CA$3.0m in 2024. Many investors are wondering about the rate at which Fission Uranium will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.Ĭheck out our latest analysis for Fission UraniumĬonsensus from 2 of the Canadian Oil and Gas analysts is that Fission Uranium is on the verge of breakeven.
The company’s loss has recently broadened since it announced a CA$6.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$8.9m, moving it further away from breakeven. engages in the acquisition, exploration, and development of uranium resource properties in Canada. With the business potentially at an important milestone, we thought we'd take a closer look at Fission Uranium Corp.'s ( TSE:FCU) future prospects.