Q: Why is this stock being hit so hard after making a uranium purchase//
5i Research Answer:
It is not so much the purchase, but the $250M convertible financing the company did in conjunction with it. Convertible bonds are often met with sellers of stock, as they can buy the bonds, sell the stock and still have equity exposure (and income) through the convertibles. The stock, also, is up 97% in a year so was easy for investors to take some of the table with a financing. The uranium purchase will give it flexibility, and it can also be used as collateral for future projects.