Here’s why the Boss Energy share price is rocketing 8% on Friday

Boss Energy shares are set to finish the week on a high note.

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Key points

  • Boss Energy shares accelerate 7.98% to $2.57 
  • Management released the results for its $5 million share purchase plan 
  • Further driving the company's shares higher is news surrounding the United Kingdom's plans to triple its nuclear power capacity by 2050 

The Boss Energy Ltd (ASX: BOE) share price is exploding today after the company released its latest capital raising update.

At the time of writing, the uranium producer’s shares are swapping hands for $2.57, up 7.98%.

In contrast, other uranium companies are also on the move on Friday. This includes Paladin Energy Ltd (ASX: PDN), up 10.63% to 88.5 cents, and Alligator Energy Ltd (ASX: AGE), up 12.64% to 10.25 cents.

It is worth noting that global uranium shares are rallying after the United Kingdom revealed its nuclear energy plans for the next two decades. As such, the British government is seeking to triple its nuclear power capacity by 2050 to reduce reliance on Russian hydrocarbons.

Boss Energy announces its share purchase plan results

The Boss Energy share price is heading north today as investors digest the positive developments surrounding the company.

In its release, Boss Energy advised that it has successfully completed its share purchase plan (SPP) underpinned by strong support.

The company raised $17.6 million, which was well over the $5 million offered to retail investors.

Due to receiving a number of overwhelming applications, Boss Energy closed the SPP early on 4 April. Originally, the SPP was due to finish at the close of business on 7 April.

The offer price of $2.15 per share represents an 11.2% discount from the last closing price and a 17% discount from the 5-day volume-weighted average price (prior to 16 March when the announcement of the offer was made). This was when the offer was announced to the market.

Boss Energy stated it will scale back applications, taking into consideration the number of shares applied for, and their current holdings.

This follows the recently successful $120 million institutional placement completed on 18 March 2022.

The proceeds of the capital raise will be used to progress a number of strategic initiatives that include the following:

  • Complete front end engineering design (FEED) study
  • Fund $113 million in development costs (including contingency)
  • Secure long-lead time items to further de-risk development
  • Restart development – post FEED and subject to COVID-19 logistic and sourcing issues
  • Continue engagement with utilities for long-term contracts
  • Use of equity to fund development de-risks project and retains maximum financial flexibility through commissioning and for future growth initiatives
  • Continue exploration focus – substantial scope to extend life of mine (LOM) and/or increase production profile

Boss Energy share price summary

With the uranium spot price rising to unprecedented levels, the Boss Energy share price has accelerated by 98% in the past year.

The company’s shares rocketed to an all-time high of $3.08 in November, before retracing to today’s level of $2.61 per share.

Boss Energy presides a market capitalisation of roughly $880.25 million with approximately 337.26 million shares on its registry.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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