The Deep Yellow Limited (ASX: DYL) share price spent most of the day 4% higher than yesterday's closing price, but has dropped this afternoon after the company made an announcement. The uranium exploration company announced its share purchase plan, intended to raise $2 million, was heavy oversubscribed.
The company received applications for more than 3.7 times the number of shares available within the purchase plan.
At the time of writing, the Deep Yellow share price is 75 cents, flat on yesterday's close.
Let's look more into this afternoon's announcement from Deep Yellow.
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Oversubscribed share purchase plan
On the ASX, there are oversubscribed share purchase plans, and then there's what happened to Deep Yellow.
The company intended to offer a maximum of approximately 3,076,000 shares but received applications for 11,420,000.
Apparently, excited investors must have felt the offered price of 65 cents per share was a bargain.
The company will now conduct a pro-rata scale-back of applications. Each investor who placed an application with the company will receive 26.94% of the shares they applied to receive. Meaning Deep Yellow will be handing out its intended number of shares.
The issued shares are expected to be issued and allotted on 29 March.
Interested investors will begin to receive refunds from Deep Yellow for any excess shares they wished to purchase in the plan that they were unable to receive.
More about Deep Yellow
Deep Yellow is a differentiated, advanced uranium exploration company. It is still in development phase but has plans to become world-wide geographically diverse asset portfolio.
The company states its long-term outlook is positive due to the role nuclear power will have in meeting clean energy targets.
Currently, Deep Yellow has 3 projects underway in Namibia.
Deep Yellow share price snapshot
The Deep Yellow share price is having a great year. It is currently up 50% year to date and an incredible 525% over the last 12 months.
The company has a market capitalisation of around $241.5 million, with approximately 322 million shares outstanding.
