"Nothing changes" as a result of the vote, asserted Mr. They were successful: While more than half of Fission shareholders voted in favour of the deal, the total fell short of the required two-thirds majority. Gifford, a semi-retired entrepreneur, connected with other skeptics on an investing bulletin board and formed FCU Oversight to push for rejection of the merger. "For the company to suggest it was willing to sell itself for under $2 … was a case of, what are you guys talking about?" Fission Uranium Corp, Denison Mines Corp terminate merger agreement. "Everybody thought, and was led to believe, that we were on the way to a $3 or $4 valuation based on what we knew about this monster deposit," said Jim Gifford, a dissident shareholder. However, it fell far short of what many Fission investors believed the company was worth, based on management's enthusiasm and analysts' targets. It was a premium to Fission's share price, which was then just below a dollar. Fission shareholders would have received 1.26 Denison shares for each of their Fission shares plus a fraction of a penny.Īt the prices prevailing at the time, the offer worked out to about $1.11 a share. He also called it the "world's best undeveloped uranium asset."įission's dissident shareholders objected to what they saw as a bargain-basement price for that deposit in the merger agreement unveiled in July. It also highlights the alluring potential of Saskatchewan's Athabasca Basin, an area where both Fission and Denison have found uranium deposits.įission's Patterson Lake South project, in particular, is regarded as an unusually rich and accessible find – "the uranium sector's crown jewel of exploration and development," in the words of Fission chief executive officer Dev Randhawa in a blog post this summer. Their defeat of the Fission-Denison marriage, which had been backed by the management of both companies, was an unusual case of little guys asserting their viewpoint against the wishes of institutional investors. Small investors in the downtrodden sector believe in its potential for big payoffs when – and if – the market for uranium improves.
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