Continued Listing Standards Notice from NYSE
USEC has been notified by the New York Stock Exchange that the Company has
fallen below the exchange's continued listing standards related to minimum
market capitalization in combination with stockholders' equity.
The Company's common stock continues to trade on the NYSE. USEC is below the
continued listing criteria established by the NYSE because the Company's market
capitalization has averaged less than $50 million in a recent consecutive 30
trading-day period at the same time that stockholders' equity has been below $50
million. USEC reported a stockholders' deficit of $472.9 million as of December
31, 2012, following the expense of $1.1 billion of previously capitalized work
in process costs related to the American Centrifuge project.
USEC has notified the NYSE that it will submit a plan to restore compliance. The
Company has 45 days from receipt of the April 30, 2013, notice from the NYSE to
submit a plan, and the NYSE has 45 days from receipt of the plan to accept or
reject it. If the plan is accepted, the Company has up to 18 months to
demonstrate compliance with the NYSE continued listing standards. During this
18-month period, USEC common shares will continue to be listed and traded on the
NYSE, subject to continued periodic review by the NYSE of USEC's progress with
respect to its plan and compliance with other NYSE continued listing standards.
The average closing price of the Company's common stock also continues to be
below the NYSE's continued listing criteria relating to minimum share price. To
cure this condition, the Company intends to seek stockholder approval for a
reverse stock split at its next annual meeting of stockholders, scheduled for
June 27, 2013. If the Company's stockholders approve the reverse stock split and
USEC effectuates the reverse stock split to cure the condition, the condition
will be deemed cured if USEC's closing share price promptly exceeds $1.00 per
Who cares? A reverse split is not a good thing. Let them delist it and it can trade in the pink sheets. When they get their act together and start making money they can reapply for a NYSE listing. I will vote against it. What they need is a new mangement team. Shorts will have another feast.
I'm betting that by the time that 45 days + 18 months happens that the price will be above $1.00 for the required amount of time with no reverse split. The shareholders won't vote for it. You cannot run data centers without nuclear/coal/gas, you cannot run industrial plants without nuclear/coal/gas, you cannot have major cities without nuclear/coal/gas and the US, Germany, China, Iran, and Japan know it. P.S. You cannot maintain the US nuclear stockpile without sourcing materials from a US company and you cannot down blend the current US stockpile (Obama wet dream) into reactor grade Uranium without USEC. I'll see all you longs on my (google it) Lagoon 52 in 5 years.
Bozo, the minimum valuation and the minimum share price are two separate issues. The minimum share price must be rectified well before the minimum valuation. So, USU does not have over 18 months from now to take care of the share price.
USU will be seeking approval for the RS shortly and it will be passed at the shareholders meeting. The RS will take effect by end of day June 28th or first couple of days in July. Count on it. Expect a 1:10 split or worse.