Appointment of Nominated Advisor and Joint Broker

25 August 2020

Yellow Cake plc ("Yellow Cake" or the "Company") 

Appointment of Nominated Advisor and Joint Broker

Continuation of Existing Share Buy-Back Programme

Yellow Cake, a specialist company operating in the uranium sector with a view to holding physical uranium for the long term, is pleased to announce the appointment of Canaccord Genuity Limited ("Canaccord") as the Company's Nominated Advisor and Joint Broker with immediate effect. 

On 8 July 2020, Yellow Cake announced the initiation of its enlarged share buyback programme to purchase up to US$10 million of the Company's Ordinary Shares over three months, commencing on 8 July 2020. The Company has entered into an agreement with Canaccord to continue to carry out on-market purchases of its Ordinary Shares (the "Existing Programme"). The agreement grants Canaccord the authority to enact purchases and make trading decisions concerning the timing of the purchases under the Existing Programme independently of the Company.

Detail of the Existing Buy-Back Programme

Purchases pursuant to the Existing Programme are being made under a combination of the authority the Company has in place to make market acquisitions in accordance with the Jersey Companies Law (the "Existing Authority") and, subject to shareholder approval, the renewal of the Existing Authority at the next Annual General Meeting of the Company (the "Renewed Authority").

The Existing Authority permits the purchase of a maximum of 8,821,572 Ordinary Shares at a maximum price (excluding expenses) of the higher of (i) 105 per cent; of the average market value of an Ordinary Share as derived from the AIM Appendix to the London Stock Exchange Daily Official List for the five business days immediately preceding the date of purchase; and (ii) the price of the last independent trade and the highest current independent bid on the London Stock Exchange plc.

To date, the Company has acquired 2,719,385 shares for a total consideration of GBP5.9 million (US$7.5 million) at a volume weighted average price of GBP215.23 per share and volume weighted average discount to Net Asset Value of 19% under the Existing Programme. The Existing Authority therefore permits up to a further 6,102,187 shares to be purchased as at today's date. Any purchases under the Renewed Authority will be subject to the maximum number of Ordinary Shares set out in such Renewed Authority and will otherwise be on the same terms as the Existing Authority.

The Existing Programme is being conducted in compliance with the Market Abuse Regulation (EU) No. 596/2014.  The Company intends to hold those Ordinary Shares purchased under the Programme in treasury. 

Purchases are being carried out in compliance with the relevant conditions for trading, restrictions regarding time and volume, disclosure and reporting obligations, and price conditions. The Ordinary Shares are being repurchased at a price (excluding expenses) that does not exceed any of (i) the last independent trade or the highest current independent bid on the relevant trading platform; and (ii) 105 per cent. of the average market value of an Ordinary Share as derived from the AIM Appendix to the London Stock Exchange Daily Official List for the five business days immediately preceding the date of purchase.

The Company will seek to make market purchases at a price or prices and volume that the Company believes will be value-enhancing for the Company's shareholders. Notwithstanding the average daily volume restriction set out in Article 3(3) of the Commission Delegated Regulation (EU) 2016/1052, the Company may make purchases in excess of these volume restrictions, subject to prevailing market conditions and liquidity.

Details of any purchases made under the Existing Programme will continue to be provided via RNS announcements and published on the Company's website.

AIM Rules for Companies disclosure

The following information is disclosed pursuant to Schedule Two Paragraph (g) of the AIM Rules for Companies:

·      Alexander Downer is currently a director of Policy Exchange Limited; and 

·      Sofia Bianchi has been a director of ARM Cement Plc in the last 5 years.

ENQUIRIES: 

ABOUT YELLOW CAKE

Yellow Cake is a London-listed company, headquartered in Jersey, which offers exposure to the uranium spot price. This is achieved through its strategy of buying and holding physical triuranium octoxide ("U₃O₈"). It may also seek to add value through the acquisition of uranium royalties and streams or other uranium related activities. Yellow Cake seeks to generate returns for shareholders through the appreciation of the value of its holding of U₃O₈ and its other uranium related activities in a rising uranium price environment. The business is differentiated from its peers by its ten-year Framework Agreement for the supply of U₃O₈ with Kazatomprom, the world's largest uranium producer. Yellow Cake currently holds 9.32 million lb of U₃O₈, all of which is held in storage in Canada and France.