There seems to be some confusion on the $YCA #uranium option - how to exercise, order of events, some idea of a credit line?!?

Here is a short thread on how it would work:

1) Yellowcake management submits an exercise notice to $KAP signaling an intent to raise capital to buy U

2) KAP has some time period to respond with an indicative price which is then verified by $YCA management as "market" when compared to third party price reporters

3) Once a price and indicated size is agreed upon, THEN management has a couple weeks to raise capital in the market

What is key here is that by the time the market is aware of a transaction, the indicated size and pricing has been set (if you think about it, a requirement to raise before pricing is set would never make sense - the market would move on your raise).

4) $YCA would then raise the capital on a best efforts basis and use the amount successfully raised to buy pounds from $KAP. While not fully disclosed, I would assume that they lose the option amount of anything they exercised but could not raise (cannot repeat this process)

5) Next, $KAP has some significant leeway in terms of setting a delivery schedule (so it is not as if they would likely be "caught short") - rather, the option exercise would impact how they manage inventories and sales through the year, so an exercise is actually good for $KAP .