Uranium Resources Announces 1-for-10 Reverse Stock Split
Receives Notice from NASDAQ on Minimum Bid Price Requirement
Uranium Resources, Inc. (NASDAQ: URRE) (URI) announced today that its
Board of Directors has approved a 1-for-10 reverse stock split of its
common stock. On January 14, 2013, the Company announced shareholder
approval to conduct a reverse stock split of its issued and outstanding
common stock by a ratio of not less than 1-for-5 and not more than
1-for-15. The primary purpose of the reverse split was to bring URI into
compliance with NASDAQ's $1.00 minimum bid price requirement. The
Company expects the reverse split to become effective immediately
following the close of trading on January 22, 2013 and the consolidated
common shares to begin trading on a split-adjusted basis as of January
23, 2013.
When the reverse stock split becomes effective, every ten shares of
issued and outstanding URI common stock will be combined into one issued
and outstanding share of common stock with no changes to the par value
of the shares. The reverse split will reduce the number of URI′s
outstanding common stock from approximately 161.1 million shares to
approximately 16.1 million shares. No fractional shares will be issued
as a result of the reverse stock split. Any fractional shares that would
have resulted will be settled in cash.
Additionally, the Company received a Staff Determination Letter from the
NASDAQ on January 15, 2013, notifying URI that its securities will be
subject to delisting from the NASDAQ Stock Market even though the
reverse stock split has been approved because the Company will not
regain compliance until the closing bid price for its common stock
exceeds $1.00 for a minimum of 10 consecutive business days under Rule
5550(a)(2). In accordance with NASDAQ rules, URI has requested a hearing
with the NASDAQ Hearing Panel to appeal the determination letter, which
will stay the action until the Company has completed the hearing and the
Hearing Panel has issued its decision.
'As anticipated, the Company received notification from NASDAQ that its
common stock remains in noncompliance with its listing qualifications,?
stated Terence J. Cryan, Interim President and CEO of URI. 'We believe
that URI′s reverse stock split initiative will produce a favorable
result from the hearing process with NASDAQ, and bring us back into full
compliance with NASDAQ listing requirements.?
About Uranium Resources, Inc.
Uranium Resources Inc. explores for, develops and mines uranium. Since
its incorporation in 1977, URI has produced over 8 million pounds of
uranium by in-situ recovery (ISR) methods in the state of Texas. URI has
over 206,600 acres of uranium mineral holdings and 152.9 million pounds
of in-place mineralized uranium material in New Mexico and an NRC
license to produce up to 1 million pounds of uranium per year. URI has
an additional 1.3 million pounds of in-place mineralized uranium
material in Texas and South Dakota. The Company acquired these
properties over the past 20 years along with an extensive information
database of historic drill hole logs, assay certificates, maps and
technical reports.
Uranium Resources routinely posts news and other information about the
Company on its website at www.uraniumresources.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are subject to risks, uncertainties and assumptions and are
identified by words such as 'expects,? 'estimates,? 'projects,?
'anticipates,? 'believes,? 'could,? and other similar words. All
statements addressing operating performance, events, or developments
that the Company expects or anticipates will occur in the future,
including but not limited to statements relating to the Company′s
estimated mineralized uranium material, the anticipated effective date
of the reverse stock split, the effect of the reverse stock split on the
per share price of URI common stock, and the anticipated outcome of the
hearing before the NASDAQ Hearing Panel are forward-looking statements.
Because they are forward-looking, they should be evaluated in light of
important risk factors and uncertainties. These risk factors and
uncertainties include, but are not limited to, the spot price and
long-term contract price of uranium, the outcome of negotiations with
the Navajo Nation, the Company′s ability to reach agreements with
current royalty holders, weather conditions, operating conditions at the
Company′s mining projects, government and tribal regulation of the
mining industry and the nuclear power industry, world-wide uranium
supply and demand, availability of capital, timely receipt of mining and
other permits from regulatory agents, market reaction to a reverse stock
split, determinations of the NASDAQ Hearing Panel and other factors
which are more fully described in the Company′s documents filed with the
Securities and Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should any of the Company′s underlying
assumptions prove incorrect, actual results may vary materially from
those currently anticipated. In addition, undue reliance should not be
placed on the Company′s forward-looking statements. Except as required
by law, the Company disclaims any obligation to update or publicly
announce any revisions to any of the forward-looking statements
contained in this news release.
Investors:
Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com
or
Media:
Uranium
Resources, Inc.
Mat Lueras, 505-269-8317
Vice President,
Corporate Development
mlueras@uraniumresources.com
