Thread by @JekyllCapital

1/ Some brief thoughts on $SPUT / $U-U and why it trading lower on today's open is a good thing for #uranium -- Yesterday's daily update showed that #Sprott did not purchase material or issue units.

2/ This confounded some investors, given the close to 30% premium of the vehicle...

There is a simple explanation: While updating an ATM, it is common to have limitations on market activities.

3/ While the new base shelf prospectus hit Friday, the company did not file an updated sales agreement and confirm the ATM until post close yesterday (see attached).

4/ During this time (Friday - Monday) the company was likely in a blackout and unable to issue units / purchase material. This also explains the significant premium which occurred over those days - the whole purpose of the ATM is to prohibit such a premium by issuing units.

5/ On to today - we opened sharply lower on #SPUT which is likely the ATM kicking back in, selling units at a significant premium in order to purchase more material (which is good for the spot market). They should do this until they approach NAV.

6/ Investors may ask - if Sprott was out of the market, why did spot trade up?

7/ The answer - maybe utilities buying but they are not typically bidders "out loud" so my guess is that traders understand this blackout dynamic, know Sprott is going to be buying a lot post updated ATM and were front running the vehicle. Not surprising.

8/ So long story short, while $SPUT price will remain a good indicator of momentum and investor interest, we should have all been expecting a sharp open lower as the ATM kicked back in and the vehicle got back to it's stated mission - issuing shares to buy #uranium