- Fusion Fuel plans to acquire between 75% and 100% of Royal Uranium’s shares, offering up to about 3.7 million of its own shares in exchange.
- This deal gives the company exposure to a diversified portfolio of uranium and natural gas royalties across the Americas.
- The royalty model allows Fusion Fuel to participate in energy markets without operational cost exposure or capital expenditure exposure.
Fusion Fuel Green (HTOO) announced on Wednesday that it has signed a definitive agreement to acquire a controlling stake in Royal Uranium Inc. through a share exchange.
The deal gives Fusion Fuel exposure to a diversified portfolio of uranium and natural gas royalties across the Americas.
Shares of Fusion Fuel Green surged nearly 11% in Wednesday’s pre-market session.
Expanding Into Uranium And Gas Royalties
Through the acquisition, Fusion Fuel is set to acquire economic interests in 16 uranium royalties and three natural gas royalties spanning exploration, development, and production.
Fusion Fuel plans to acquire between 75% and 100% of Royal Uranium’s shares, offering up to about 3.7 million of its own shares to the existing Royal Uranium shareholders in exchange.
On Stocktwits, retail sentiment around the stock changed to ‘extremely bullish’ from ‘bullish’ territory amid ‘high’ message volume levels.
High-Quality Assets And Cash Flow
The royalty portfolio spans premier uranium districts, including the Athabasca Basin and the Berlin Project in Colombia, along with additional sites in Argentina and Newfoundland and Labrador.
The company said that its portfolio includes Alberta natural gas royalties that are currently operational and generating cash flow. In addition to providing near-term revenue, Fusion Fuel said this will maintain leverage to long-term structural growth in energy demand.
“As electrification accelerates and AI-driven infrastructure continues to expand, reliable and scalable clean energy sources, in particular nuclear energy, are expected to play a critical role.”
— JP Backwell, CEO, Fusion Fuel
The acquisition positions the company to gain from a surging electricity demand fueled by AI and data centers, uranium supply shortages, and a growing focus on securing regional energy sources, Fusion Fuel said.
HTOO stock has declined by over 76% in the last 12 months.
Also See: Moderna Stock Gains After FDA Accepts Company’s Revised Flu Vaccine Application For Review
For updates and corrections, email newsroom[at]stocktwits[dot]com.