Houston American Energy Announces Adjournment Of Its Annual Meeting To Friday, July 17, 2020

Rhea-AI Summary

Houston American Energy Corp. (NYSE American: HUSA) has announced the adjournment of its virtual annual stockholder meeting, initially held on June 23, 2020, to July 17, 2020. The meeting was postponed to gather more proxies for Proposal 2, which seeks approval for a reverse stock split, deemed necessary to maintain NYSE listing. While a majority of votes favored the proposal, it fell short of the required majority of all outstanding shares. The company highlights that failure to conduct a reverse split could lead to delisting and negatively impact capital raising.

Positive

• A substantial majority of shares voted favored Proposal 2 for a reverse stock split.
• The reverse stock split aims to maintain the company's listing on the NYSE American.

Negative

• Proposal 2 did not receive majority support from all outstanding shares.
• Failure to implement a reverse stock split could lead to delisting.

HOUSTON, June 23, 2020 /PRNewswire/ -- Houston American Energy Corp. (NYSE American: HUSA) today announced that it convened and then adjourned, without conducting any business, its virtual annual meeting of stockholders (the "Annual Meeting") held on June 23, 2020, at 10:00 a.m., central time, until Friday, July 17, 2020 at 10:00 a.m., central time, at which time the Company's stockholders will vote on the proposals to be considered at the Annual Meeting (subject to any potential additional adjournments), including Proposal 2, approval of an amendment to the Company's certificate of incorporation to provide the Board of Directors the flexibility to effect a reverse stock split of the Company's common stock.

The Annual Meeting will still be held as a virtual meeting. The Annual Meeting was adjourned in order to solicit additional proxies for Proposal 2. At the time of the meeting, a substantial majority of the shares that had been voted on Proposal 2 had been voted in its favor; however, the favorable votes were less than the majority of all outstanding shares of the Company's voting stock needed for approval.

The Board of Directors believes approval of Proposal 2 is in the best interests of the Company and its stockholders because the NYSE American LLC, on which the Company's common stock is listed, has notified the Company that a reverse split is necessary to maintain the listing of the common stock on the NYSE American. The NYSE American has granted the Company additional time until the Annual Meeting to implement a reverse stock split. A delisting of the common stock could significantly impair the Company's ability to raise additional capital; result in lower prices for the Company's common stock and larger spreads in the bid and ask prices for the common stock; and impact the liquidity of the Company's common stock. Proposal 2 is described in more detail in the Company's proxy statement filed with the Securities and Exchange Commission on May 12, 2020, furnished to stockholders in connection with the Annual Meeting.

The Company encourages any stockholder that has not yet voted its shares or is uncertain if their shares have been voted to contact their broker or bank. The Board of Directors and management respectfully requests stockholders as of the record date, May 6, 2020, to please vote their proxies as soon as possible. Stockholders who have previously submitted their proxy or otherwise voted for the Annual Meeting and who do not want to change their vote need not take any action.

About Houston American Energy Corp.

Based in Houston, Texas, Houston American Energy Corp. is a publicly-traded independent energy company with interests in oil and natural gas wells, minerals and prospects. The company's business strategy includes a property mix of producing and non-producing assets with a focus on the Permian Basin in Texas, Louisiana and Colombia.

For additional information, view the company's website at www.houstonamerican.com or contact Houston American Energy Corp. at (713) 222-6966.

 

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SOURCE Houston American Energy Corp.

FAQ

What is the date of the adjourned annual meeting for Houston American Energy (HUSA)?

The adjourned annual meeting will be held on July 17, 2020, at 10:00 a.m. central time.

What is Proposal 2 for Houston American Energy (HUSA)?

Proposal 2 seeks stockholder approval for a reverse stock split to maintain the company's listing on the NYSE American.

Why was the annual meeting for Houston American Energy (HUSA) adjourned?

The meeting was adjourned to solicit additional proxies for Proposal 2, as it did not receive the necessary majority of all outstanding shares.

What could happen if the reverse stock split is not approved for HUSA?

If the reverse stock split is not approved, the company risks delisting from the NYSE American, affecting capital raising and liquidity.

When was the original annual meeting for Houston American Energy (HUSA)?

The original annual meeting was held virtually on June 23, 2020.