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Fission’s chairman and CEO Dev Randhawa will take over the CEO position in the merged company. Denison Energy would then be equally owned by the Denison- and Fission shareholders. The combined company will be named Denison Energy, boasting a market capitalization of approximately C$900 million. This implies a price of 1.25 CAD per Fission-share, a premium of 18% to the average price of the past 30 days.
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If approved, Fission’s shareholders will receive 1.26 common shares of Denison for each common share of Fission held plus $0.0001 per share in cash. We are confident that our shareholders will benefit from the value creation opportunities that will be realized through an expanded and more diversified uranium company," said Denison’s executive chairman, Ron Hochstein, Executive Chairman of Denison. "The continued exploration success at our Phoenix deposit and Gryphon discovery, in combination with the discovery and exploration success of the world class Triple R deposit puts the combined company in an incredibly strong strategic position, with the most significant development portfolio in the world. (TSE:FCU) (OTCQX:FCUUF) intends to take over its competitor Fission Uranium for approximately C$483 million to create a diversified uranium company with a promising project portfolio in northern Saskatchewan. Randhawa said he sees no point in sitting down with the dissidents before then.Canada’s Denison Mines ( TSE:DML) (NYSE MKT:DNN) and Fission Uranium Corp. If so, the company's next annual general meeting, which has to take place before the end of the year, could yield more drama. He hopes that FCU Oversight can become a unified voice for shareholders who are dissatisfied with the company's direction. Gifford, the dissident shareholder, believes that the company is worth $3 a share and said it would have taken an all-cash bid of that size to satisfy investors. "I'm not sure if a higher price would have made them happier." "Our retail base is very passionate about this project," he said. He does not believe Denison will make a new offer. He said the failed merger deal would have offered an excellent chance for Fission shareholders to acquire an interest in Denison's assets at attractive prices.
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In an interview, he said the company has continued drilling the Patterson Lake South site through the summer and intends to keep on working to assess the full size of the deposit. "Nothing changes" as a result of the vote, asserted Mr. They were successful: While more than half of Fission shareholders voted in favour of the deal, the total fell short of the required two-thirds majority. Gifford, a semi-retired entrepreneur, connected with other skeptics on an investing bulletin board and formed FCU Oversight to push for rejection of the merger. "For the company to suggest it was willing to sell itself for under $2 … was a case of, what are you guys talking about?"
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"Everybody thought, and was led to believe, that we were on the way to a $3 or $4 valuation based on what we knew about this monster deposit," said Jim Gifford, a dissident shareholder.
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However, it fell far short of what many Fission investors believed the company was worth, based on management's enthusiasm and analysts' targets. It was a premium to Fission's share price, which was then just below a dollar. Fission shareholders would have received 1.26 Denison shares for each of their Fission shares plus a fraction of a penny.Īt the prices prevailing at the time, the offer worked out to about $1.11 a share. He also called it the "world's best undeveloped uranium asset."įission's dissident shareholders objected to what they saw as a bargain-basement price for that deposit in the merger agreement unveiled in July. It also highlights the alluring potential of Saskatchewan's Athabasca Basin, an area where both Fission and Denison have found uranium deposits.įission's Patterson Lake South project, in particular, is regarded as an unusually rich and accessible find – "the uranium sector's crown jewel of exploration and development," in the words of Fission chief executive officer Dev Randhawa in a blog post this summer. Their defeat of the Fission-Denison marriage, which had been backed by the management of both companies, was an unusual case of little guys asserting their viewpoint against the wishes of institutional investors. Small investors in the downtrodden sector believe in its potential for big payoffs when – and if – the market for uranium improves.