Spruce Point Capital says it’s short Uranium Energy, sees 65%-85% downside risk

Spruce Point Capital says it is short Uranium Energy (UEC). In a research note, Spruce Point said that after conducting a forensic evaluation of Uranium Energy and its ambitions of becoming a leading integrated uranium explorer and producer in the United States, “we have grave concerns about its ability to deliver for investors, given the CEO’s documented connections to SEC, BCSC, and DOJ-convicted individuals.” Spruce Point, which believes there is 65%-85% potential downside risk, highlights several key concerns with the company, including that the firm believes CEO Amir Adnani is “highly promotional,” and that his judgment should be questioned given his documented business and familial connections to unscrupulous actors. The firm also has concerns about UEC’s asset base and ability to operate at scale to fulfill its ambitions, and calls UEC’s Board, Audit Committee, and financial control “troubling.”