During the second quarter, no common stock was sold under the Company’s existing At-The-Market Sales Agreement (“ATM”) with BTIG, LLC. In late July, the Company sold 2.66 million shares under the ATM program, raising net proceeds of $1.455 million. URI has a total of $11.4 million in share value available for future sales under the ATM.
URI incurred cash expenditures from its operating and investing activities during the first six months of $11.5 million. With current cash on hand, the RCF option and the ATM agreement, the Company expects it has sufficient funding for approximately twelve months of operations.
Mr. Ewigleben concluded, “While the uranium market faces uncertainty and weakness in the near term, the long-term fundamentals are strong. Two reactors were put back in operation at the Ohi plant in Japan, which is expected to potentially open the door for additional restarts. China’s aggressive plan to continually bring new reactors online to meet its growing energy needs also creates new demand for uranium. This expansion, combined with additional emerging markets facing growing energy requirements and the expiration of the HEU agreement with Russia at the end of 2013, we expect will drive uranium prices in the long term. It is our intention to capitalize on the supply-demand imbalance by maintaining our strategic focus and getting back to production.”NASDAQ Extension URI was granted an additional 180-day grace period until January 14, 2013 to regain compliance with NASDAQ’s minimum $1.00 bid price per share rule. Under NASDAQ listing rules, the Company was granted this extension because it met the continued listing requirement for market value of publicly held shares and all other applicable NASDAQ listing requirements, except the bid price requirement, and the Company provided written notice to NASDAQ of its intention to cure the bid price deficiency during the second compliance period. The Company will regain compliance with the minimum bid requirement if, at any time prior to January 14, 2013, the bid price for the Company's common stock closes at $1.00 per share or above for a minimum of 10 consecutive business days.