Dallas, TX --, Jan. 31, 2014 (GLOBE NEWSWIRE) -- Red Mountain Resources, Inc. (OTCQB: RDMP.QB) (the "Company") announced today the effectiveness of a 1-for-10 reverse split of its shares of common stock (the "Reverse Split").
The Company's common stock began trading on a Reverse Split adjusted basis today on the OTCBB with a new CUSIP number of 75678V302. The Company's common stock will temporarily trade under the symbol "RDMPD" for 20 business days, after which time the symbol will revert back to "RDMP".
Upon effectiveness, every ten shares of common stock of the Company were automatically combined into one share of common stock, reducing the number of outstanding shares of common stock of the Company from approximately 134.0 million to approximately 13.4 million. In addition, the number of authorized shares of common stock was reduced from 500,000,000 shares to 50,000,000 shares.
No fractional shares were issued in connection with the Reverse Split. Instead, the Company's transfer agent will aggregate all fractional shares that otherwise would have been issued as a result of the Reverse Split and those shares will be sold into the market. Shareholders who would have held a fractional share of the Company will receive a cash payment from the net proceeds of that sale in lieu of such fractional share.
Effective today, the Company also changed its state of incorporation from Florida to Texas.
Both the Reverse Split and the reincorporation were approved by the Company's common shareholders at the annual meeting of shareholders on December 20, 2013.
Broadridge Corporate Issuer Solutions, Inc. will act as the Company's Exchange Agent in connection with the Reverse Split. Shareholders will receive the notices, forms and instructions regarding the exchange of their pre-split shares for post-split shares from the Exchange Agent or their broker.
About Red Mountain Resources, Inc.
Red Mountain Resources, Inc. is a Dallas-based growth-oriented
energy company engaged in the acquisition, development and
exploration of oil and natural gas properties in established basins
with demonstrable prolific producing zones. Currently, the
Company has established acreage positions and production in the
Permian Basin of West Texas and Southeast New Mexico and the
onshore Gulf Coast of Texas. Additionally, the Company has an
established and growing acreage position in Kansas. For more
information, please go to www.RedMountainResources.com.
Safe Harbor Statement
This press release contains forward-looking information, including
information regarding the Reverse Split. Readers are
cautioned not to place undue reliance on any such forward-looking
statements, each of which speaks only as of the date made.
Such statements are subject to certain risks and uncertainties
which are disclosed in the Company's reports filed with the
Securities and Exchange Commission (the "SEC"), including its Form
10-K for the fiscal year ended May 31, 2013, its Form 10-Q for the
quarter ended September 30, 2013 and its other filings with the
SEC. These risks and uncertainties could cause actual results to
differ materially from those currently anticipated or
projected.
We may use words such as "anticipates," "believes," "expects," "intends," "will," "should," "may" and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. Undue reliance should not be placed on such forward-looking statements as such statements speak only as of the date on which they are made. We do not undertake to update our forward-looking statements unless required by law.