Uranium Resources, Inc. (NASDAQ: URRE) put forward several issues for its shareholders to decide upon during its latest annual shareholder meeting. Among those issues was the matter of additional capital injection to ensure that the company’s liquidity position is strong to allow it weather the prevailing storm in the commodities market and build foundation for a prosperous future.
Uranium Resources, Inc. (NASDAQ: URRE) recently entered into an equity financing deal with Aspire Capital Fund LLC. Although the company and the investor had finalized the details of the $12 million capital boost, shareholders of URRE needed to have the last word on it. During the latest AGM, shareholders voted to support the funding agreement, thus paving the way for URRE to access the funds negotiated with Aspire.
Resources, Inc. (NASDAQ: URRE) hoping for the best
Although the commodity market remains challenging because of weak prices and soft demand, Uranium Resources, Inc. (NASDAQ:URRE) remains hopeful that the future will be better. Slowdown in nuclear reactor activities in many partners of the world has greatly eroded demand for uranium. The lower oil prices that diminished the incomes of many oil-funded economies also added to the pain. But there are hopes that the rising oil prices will lift appetite for uranium as countries increase budget allocation for nuclear energy programs.
There are also hopes that Japan will accelerate restarting of its nuclear plants shut down during the Fukushima disaster. However, recent reports from the country that the government is considering reducing Japan’s exposure to nuclear energy appear to complicate the picture. Japan is a major uranium buyer.
Outside Japan, URRE and other uranium companies are hoping that demand for nuclear energy in the Middle East and other parts of Asia will strengthen in the coming years, thus boosting sales.
Surviving the storm
In the face of the storm of soft demand and weak pricing environment, Uranium Resources, Inc. (NASDAQ:URRE) is turning to internal efficiency to ensure that it survives the storm unscathed. With the shareholder approval of the $12 million capital injection, the management has become even more confident about weathering the storms.