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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.