U3O8 Corp. Announces Results Of Shareholder Meeting And Warrant Cancellation

U3O8 Corp. Announces Results of Shareholder Meeting and Warrant Cancellation

09:00 EDT Friday, June 23, 2017 

TORONTO, June 23, 2017 /CNW/ - U3O8 Corp. (TSX: UWE), (OTCQB:  UWEFF) ("U3O8 Corp." or the "Company") reports that all matters brought before its shareholders were approved at the Annual & Special Meeting ("ASM") held yesterday in Toronto, Ontario.  A total of 121,790,106 of the Corporation's common shares were voted, representing 35% of its issued and outstanding stock.  In addition, 19.3 million warrants expired and 2.85 million warrants were exercised for gross proceeds of $99,750, which together reduce the number of outstanding warrants by approximately 18%. 

Warrant Exercise & Expiry

In the press release dated June 7 th, 2017, U3O8 Corp. reported that a shareholder had offered to have 19.3 million warrants accelerated at a strike price of over double the current share price.  The warrant acceleration term ended at midnight last night, at which time the warrants had not been exercised, and have therefore been cancelled.  "The shareholder who made this offer did so in the broader interest of other shareholders in helping the Company achieve a leaner capital structure.  I would also like to thank the shareholders who voted, providing a clear mandate to the Board," said Richard Spencer, U3O8 Corp.'s President and CEO.  

In addition, Dr. Keith Barron, a director of the Corporation, exercised 2.85 million out-of-the-money warrants for gross proceeds of $99,750 in order to provide the Company with working capital without diluting other shareholders. 

Key matters approved at the ASM include:

Consolidation and Deconsolidation of the Corporation's Stock ("Consolidation-Deconsolidation")

The goal of the Consolidation-Deconsolidation is to provide a cost-effective method of paying out, for the value of shares held, accounts of less than 1,000 U3O8 Corp. shares.  Most accounts that hold less than 1,000 shares are inactive and removal of these accounts from the shareholder register would result in significant administrative cost savings.  

The Company will be offering a simple and cost-effective way for shareholders, irrespective of account size, to purchase additional shares of the Company prior to the Consolidation-Deconsolidation coming into effect. The additional shares will be made available within the next few business days via an "Existing Shareholder Prospectus Exemption" ("ESPE") – and shareholders will have a two- to three-week window in which to participate.  General information on the ESPE is available on the Company's homepage at http://www.u3o8corp.com and specific terms of the financing will be press released shortly.

The Consolidation-Deconsolidation was approved by 96% of the shares voted, with 4% against.

Share Consolidation ("Consolidation") 

Shareholders approved the proposal to undertake a Consolidation of 20 current U3O8 Corp. shares to one new (post-Consolidation) share.  The aim of the Consolidation is to meet the metrics required for larger funds to invest in the stock alongside the Company's current shareholder base.  The result of the shareholder ballot was 86% of shares voted in favour and 14% against.  The Board intends to undertake the Consolidation after the Consildation-Deconsolidation, described above, has been completed. 

Directors

Shareholders voted for the slate of directors proposed by Management as follows:

U3O8 Corp.'s Chairman, Mr David Constable, commented: "I would like to formally thank Darin Milmeister who offered not to stand for re-election as a director, so as to allow David Marsh to be nominated without increasing the size of the board.  Darin provided sage advice and counsel during his term on the board, for which I thank him.  I welcome David Marsh to the board and look forward to working with him".   

Auditors

98% of shares were voted in favour of the appointment of Davidson and Company LLP to be the Company's auditors for 2017.