Besides making progress at its properties, Uranium Energy has been securing sales deals, announcing earlier this month that it has received $3.08 million in cash from the sales of uranium inventory. Most recently, the company faced some legal backlash regarding its uranium stocks, with Pomerantz putting out a release last week stating that it is investigating claims on behalf of Uranium Energy investors. The company quickly responded to the allegations, and said they have "absolutely no merit and are comprised of unfounded allegations made by a third party whose motives are questionable."
Chang agrees that the claims are questionable, and has said that "[t]he fact that two legal investigations were initiated solely off of an article disclosing a short position on the stock is baffling." He also believes the 30-percent drop in the company's share price following the news was irrational.Energy Fuels Energy Fuels has been working to acquire Uranerz Energy (TSX:URZ,NYSEMKT:URZ) for some time, and closed the deal this past Friday. There were mixed reviews about the deal initially, as some had raised concerns about merging two companies with different methods of producing uranium. Conversely, others were happy with the deal and thought the combined company would be stronger and more competitive in the US. However, now that all is said and done, analysts are pointing at the positives. Chang noted in a research report that the merger gives the new company six long-term sales contracts, with total deliveries for this year expected to reach 1 million pounds at an average price of $59 per pound. Nichols Ranch, which is the newest ISR production center in the US, is of particular value, as it has a licensed capacity of 2 million pounds of U3O8 per year. Investor takeaway The vote of confidence from the Russell indexes reflected positively in the share prices of both companies. At end of day Monday, Energy Fuels was up 11.11 percent on the TSX, trading at C$6.30, and up 9.87 percent on NYSE MKT, trading at US$5.12. Uranium Energy saw a 13.06-percent boost up to $2.04 on the NYSE MKT. Securities Disclosure: I, Kristen Moran, hold no direct investment in any of the companies mentioned in this article. Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content. Related reading: Energy Fuels Closed Acquisition of Uranerz Energy
Marin Katusa: Focus on North American Uranium StocksUranium Energy Hits Major Milestones at Palangana and Burke Hollow Projects UEC and Energy Fuels Added to Russell 3000® Index to Represent US Uranium Space from Uranium Investing News