Culper Research short ‘insider enrichment scheme’ NexGen Energy

Culper Research says it is short NexGen Energy (NXE), developer of Rook I, a basement-hosted uranium deposit in Saskatchewan’s Athabasca basin which the company calls “the world’s most strategic uranium asset.” In a recently published report, Culper writes that it believes “Rook I’s claimed C$6.3B NPV is overstated by 43% to 62%, NexGen’s claimed 29.7M lbs. peak annual uranium production is impossible to achieve, and NexGen is ultimately an insider enrichment scheme with substantial downside.” “NexGen investors seem to bank on the possibility that the Company will be acquired, but the Company’s own governance structure seems designed to prevent this very possibility. A poison pill triggers at 20% ownership and convertible debentures contain ‘strategic alignment provisions’ that require holders to vote with the board and bar them from tendering into an unsolicited bid. The Board can also waive or block any offer at its discretion. We do not believe NexGen will ever be sold. We are short and believe shares are headed lower,” the report reads. Shares of NexGen are trading about 1% lower in Friday trading.