Global Atomic faces potential class action

Global Atomic (TSX: GLO) is facing a potential lawsuit related to disclosures made by the company dating back to late 2023.

In a press release on Wednesday, the Canadian uranium developer said it has been notified of a statement of claim filed with the Ontario Superior Court of Justice threatening class action.

The statement alleges that the company and its chief executive officer Stephen Roman had made “misrepresentations” to investors in its public disclosure between Nov. 10, 2023 to Jan. 23, 2025. It did not specify the amount of damages that the plaintiffs are seeking.

The action has not yet been certified by the Court to proceed and does not have the required leave sought under Section 138.8 of Ontario’s Securities Act to begin a lawsuit, Global Atomic noted in its release.

Shares of Global Atomic traded 3.4% lower by Thursday afternoon, for a market capitalization of C$416.7 million ($304.5 million).

US loan scrutiny

The Court filing follows an investor alert issued by Toronto-based law firm Berger Montague in late January, stating that it is investigating the company and inviting shareholders to discuss potential claims.

The statement pertains to a potential $295 million debt facility with the US International Development Finance Corporation (DFC) for the company’s flagship Dasa project in Niger. Global Atomic had previously hoped to close the funding in early 2025, but a military coup in the African nation delayed the process.

Berger Montague alleges that since announcing the DFC funding interest in late 2023, the company has failed to disclose certain pre-conditions of the loan and developments that could affect the financing process, such as deteriorating US-Niger relationships.

The DFC financing, which is still being reviewed, would cover 60% of the costs to build the Dasa project, considered to be the highest-grade uranium deposit in Africa.

Global Atomic previously stated the project has “strong support” from Niger’s current regime. Since taking control in July 2023, the junta-led government has initiated an overhaul of the nation’s mining sector, resulting in the seizure of a large uranium mine operated by France’s Orano.