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U3O8 Corp. Announces Intention to Seek Shareholder Approval for a Share Consolidation at its Annual Special Meeting
U3O8 Corp. Announces Intention to Seek Shareholder Approval for a Share Consolidation at i...
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[{"type":"text","content":"\n\n\n\nU3O8 Corp. Announces Intention to Seek Shareholder Approval for a Share Consolidation at its Annual Special Meeting\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, May 23, 2017\n\n\n\nTORONTO, May 23, 2017 /CNW/ - U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) (\"U3O8 Corp.\" or the \"Company\") announces that it will seek shareholder approval to undertake a restructuring of its common shares at its Annual and Special Meeting scheduled to be held at 11am on Thursday June 22 at 20 Toronto Street Second Floor, Toronto, Ontario M5C 2B8. \n\nThe proposed share consolidation includes three steps to achieve two things: \n\n\nTo reduce the number of accounts that hold a small number of shares in the Company, which have a disproportionately high maintenance cost; and\nTo consolidate 20 current common shares to one new share. \n\nReduction in the Number of Small Accounts \n\nU3O8 Corp. has a large shareholder base that resulted from Company acquiring what are now its lead projects from Mega Uranium Ltd. (\"Mega\") in 2010.  The projects were purchased with U3O8 Corp. shares, and Mega chose to distribute that stock as a dividend in kind to its shareholders.  The result is that U3O8 Corp. now has 18,500 shareholders, 13,500 of whom hold less than 1,000 shares.  The Company incurs significant printing and mailing costs for each shareholder meeting with such a large shareholder base, and the Company intends to reduce the number of small accounts by seeking shareholder permission to implement Steps 1 and 2 as described below:    \n\nStep 1: is a consolidation of 1,000 current common shares to 1 new share.  Since the Company would not issue fractional shares, the 13,500 shareholders with accounts of less than 1,000 shares, representing 0.8% of the Company's issued and outstanding shares, would be flagged for payout for the value of their shares based on the market price;\n\nStep 2: Immediately after the 1,000 for 1 consolidation, each share would be split by 1,000, to get back to the original share count minus the 0.8% ...