0001104659-19-033542.txt : 20190604 0001104659-19-033542.hdr.sgml : 20190604 20190603211829 ACCESSION NUMBER: 0001104659-19-033542 CONFORMED SUBMISSION TYPE: S-3 PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 20190604 DATE AS OF CHANGE: 20190603 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WESTWATER RESOURCES, INC. CENTRAL INDEX KEY: 0000839470 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 752212772 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: S-3 SEC ACT: 1933 Act SEC FILE NUMBER: 333-231929 FILM NUMBER: 19875102 BUSINESS ADDRESS: STREET 1: 6950 S. POTOMAC STREET STREET 2: SUITE 300 CITY: CENTENNIAL STATE: CO ZIP: 80112 BUSINESS PHONE: (303) 531-0470 MAIL ADDRESS: STREET 1: 6950 S. POTOMAC STREET STREET 2: SUITE 300 CITY: CENTENNIAL STATE: CO ZIP: 80112 FORMER COMPANY: FORMER CONFORMED NAME: URANIUM RESOURCES INC /DE/ DATE OF NAME CHANGE: 19920703 S-3 1 a19-11015_1s3.htm S-3

Table of Contents

 

As filed with the Securities and Exchange Commission on June 3, 2019

Registration No. 333-        

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM S-3

 

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

 


 

WESTWATER RESOURCES, INC.

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

75-2212772

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification Number)

 

6950 South Potomac Street, Suite 300

Centennial, Colorado 80112

(303) 531-0516

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 


 

Jeffrey L. Vigil

Vice President—Finance and Chief Financial Officer

Westwater Resources, Inc.

6950 South Potomac Street, Suite 300

Centennial, Colorado 80112

(303) 531-0516

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 


 

Copies to:

 

Paul Hilton, Esq.
David R. Crandall, Esq.
Hogan Lovells US LLP
1601 Wewatta Street, Suite 900
Denver, Colorado 80202
Telephone: (303) 899-7300
Facsimile: (303) 899-7333

 

Anthony J. Marsico, Esq.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
666 Third Avenue
New York, New York 10017
Telephone: (212) 935-3000
Facsimile: (212) 983-3115

 

Approximate date of commencement of proposed sale to the public:  From time to time after the effective date of this registration statement.

 

If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box:  o

 

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box:  x

 

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o

 

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  o

 

If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box.  o

 

If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box.  o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

o

 

Accelerated filer

o

Non-accelerated filer

x

 

Smaller reporting company

x

 

 

 

Emerging growth company

o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act.  o

 


 

CALCULATION OF REGISTRATION FEE

 

 

 

 

 

 

 

 

 

 

 

Title of each class of
securities to be registered

 

Amount to be
registered(1)

 

Proposed maximum
offering price per
unit(2)

 

Proposed maximum
aggregate offering
price (2)

 

Amount of
registration fee

 

Common Stock, par value $0.001 per share

 

104,294

 

$6.14

 

$640,365

 

$77.61

(3)

(1)          This registration statement also relates to such additional shares of common stock of the registrant as may be issued with respect to such shares of common stock by way of a stock dividend, stock split or similar transaction.

(2)          Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(c) under the Securities Act of 1933, as amended (the “Securities Act”), based upon the average high and low per share prices of the registrant’s common stock as reported on The Nasdaq Capital Market on May 31, 2019.

(3)          Pursuant to Rule 457(p), a portion of the registration fee ($4,923.75) paid by the registration with respect to Registration Statement File No. 333-231015 (filed on April 24, 2019), which was withdrawn by the registrant, is being applied to payment of the registration fee with respect to this registration.

 

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

 

 

 


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The information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state or jurisdiction where the offer or sale is not permitted.

 

SUBJECT TO COMPLETION, DATED JUNE 3, 2019

 

PROSPECTUS

 

GRAPHIC

 

104,294 Shares of Common Stock

 

This prospectus relates to the resale from time to time of up to an aggregate of 104,294 shares of our common stock by the selling stockholder named herein, which shares were issued by the Company to the selling stockholder in a private placement on May 30, 2019.

 

All of the proceeds from the sale of the shares covered by this prospectus will be received by the selling stockholder. We will not receive any of the proceeds from the sale of those shares. Our registration of the common stock covered by this prospectus does not mean that the selling stockholder will offer or sell any of the common stock. The shares may be offered and sold from time to time by the selling stockholder named herein through public or private transactions at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices. See “Plan of Distribution” for a more complete description of the ways in which the common stock may be sold.

 

Our common stock is listed on the Nasdaq Capital Market under the symbol “WWR”. On May 31, 2019, the last reported sale price of our common stock on the Nasdaq Capital Market was $5.60 per share.

 

Investing in our securities involves a high degree of risk. You should read “Risk Factors” beginning on page 4 of this prospectus and the reports we file with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended, incorporated by reference in this prospectus, to read about factors to consider before purchasing our securities.

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

 

The date of this prospectus is                    , 2019

 


Table of Contents

 

TABLE OF CONTENTS

 

ABOUT THIS PROSPECTUS

ii

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

ii

PROSPECTUS SUMMARY

1

RISK FACTORS

4

USE OF PROCEEDS

5

MARKET FOR COMMON STOCK AND DIVIDEND POLICY

5

SELLING STOCKHOLDER

5

PLAN OF DISTRIBUTION

7

DESCRIPTION OF COMMON STOCK

9

LEGAL MATTERS

11

EXPERTS

11

WHERE YOU CAN FIND MORE INFORMATION

11

INFORMATION INCORPORATED BY REFERENCE

11

 

We have not, and the selling stockholder has not, authorized anyone to provide you with information different from that contained or incorporated by reference in this prospectus or in any supplement to this prospectus or free writing prospectus, and neither we nor the selling stockholder takes any responsibility for any other information that others may give you. This prospectus is not an offer to sell, nor is it a solicitation of an offer to buy, the securities in any jurisdiction where the offer or sale is not permitted. You should not assume that the information contained in this prospectus or any prospectus supplement or free writing prospectus is accurate as of any date other than the date on the front cover of those documents, or that the information contained in any document incorporated by reference is accurate as of any date other than the date of the document incorporated by reference, regardless of the time of delivery of this prospectus or any sale of a security. Our business, financial condition, results of operations and prospects may have changed since those dates.

 

As permitted by the rules and regulations of the Securities and Exchange Commission (the “SEC”), the registration statement of which this prospectus forms a part includes additional information not contained in this prospectus. You may read the registration statement and the other reports we file with the SEC at the SEC’s web site or at the SEC’s offices described below under the heading “Where You Can Find More Information.” Before investing in our common stock, you should read this prospectus, as well as the additional information described under “Where You Can Find More Information” and “Information Incorporated by Reference.”

 

References to the “Company,” “WWR,” “we,” “our” and “us” in this prospectus are to Westwater Resources, Inc. and its consolidated subsidiaries, unless the context otherwise requires. This document includes trade names and trademarks of other companies. All such trade names and trademarks appearing in this document are the property of their respective holders.

 

i


Table of Contents

 

ABOUT THIS PROSPECTUS

 

This prospectus is part of a registration statement that we filed with the SEC using a “shelf” registration process or continuous registration process. Under this shelf registration process, the selling stockholder may, from time to time, sell the common stock described in this prospectus in one or more offerings. This prospectus provides you with a description of the common stock which may be offered by the selling stockholder. Each time a selling stockholder sells common stock, the selling stockholder may be required to provide you with this prospectus and, in certain cases, a prospectus supplement containing specific information about the selling stockholder and the terms of the securities being offered. That prospectus supplement may include additional risk factors or other special considerations applicable to those securities. Any prospectus supplement may also add, update or change information in this prospectus. If there is any inconsistency between the information in this prospectus and any prospectus supplement, you should rely on the information in that prospectus supplement. You should read both this prospectus and any prospectus supplement together with additional information described under “Where You Can Find More Information” and “Information Incorporated by Reference” before investing in our common stock.

 

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

 

This prospectus and the documents we have incorporated by reference contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements convey our current expectations or forecasts of future events. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

 

Forward-looking statements are generally identifiable by use of the words “estimate,” “project,” “believe,” “intend,” “plan,” “anticipate,” “expect” and similar expressions. These forward-looking statements include management’s expectations regarding our adequacy of funding, liquidity, burn rate, exploration plans, capital requirements, timing of receipt of mining permits and access rights, acquisition or partnering opportunities, sales or exchanges, production capacity of mining operations for properties in South Texas, New Mexico, Alabama, Utah and Nevada and planned dates for commencement of production at such properties. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Actual results could differ materially from those in forward-looking statements because of, among other reasons, the factors described below and in the periodic reports that we file with the SEC from time to time, including Forms 10-K, 10-Q and 8-K and any amendments thereto. The forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks.

 

Key factors that could cause actual results to be different than expected or anticipated include, but are not limited to:

 

·                  the availability of capital to the Company;

 

·                  the spot prices and long-term contract prices of graphite, vanadium, lithium and uranium;

 

·                  the ability of Westwater to enter into and successfully close acquisitions, dispositions or other material transactions;

 

·                  government regulation of the mining industry and the nuclear power industry in the United States;

 

·                  operating conditions at our mining projects;

 

·                  the world-wide supply and demand of graphite, vanadium, lithium and uranium;

 

·                  weather conditions;

 

·                  unanticipated geological, processing, regulatory and legal or other problems we may encounter;

 

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·                  the results of our exploration activities, and the possibility that future exploration results may be materially less promising than initial exploration result;

 

·                  any graphite, vanadium, lithium or uranium discoveries not being in high enough concentration to make it economic to extract the metals;

 

·                  currently pending or new litigation or arbitration;

 

·                  our ability to maintain and timely receive mining and other permits from regulatory agencies; and

 

·                  the risks set forth under the caption “Risk Factors” herein and in our most recent Annual Report on Form 10-K and our other filings with the SEC.

 

In light of these risks, uncertainties and assumptions, you are cautioned not to place undue reliance on forward-looking statements, which are inherently unreliable and speak only as of the date of this prospectus, any accompanying prospectus supplement or free writing prospectus, or any document incorporated by reference in this prospectus. When considering forward-looking statements, you should keep in mind the cautionary statements in this prospectus, any accompanying prospectus supplement or free writing prospectus, and the documents incorporated by reference in this prospectus. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in or incorporated by reference in this prospectus or any accompanying prospectus supplement or free writing prospectus might not occur.

 

iii


Table of Contents

 

PROSPECTUS SUMMARY

 

This summary highlights selected information about Westwater Resources, Inc. and this offering of common stock. This summary does not contain all of the information that may be important to you in making an investment decision. For a more complete understanding of Westwater Resources, Inc. you should read carefully this entire prospectus, including the “Risk Factors” section and the other documents we refer to and incorporate by reference. Unless otherwise indicated, “common stock” means our common stock, par value $0.001 per share. Unless otherwise noted, all share and per share information has been adjusted to reflect the one-for-fifty reverse stock split of our common stock that became effective following the close of trading on April 22, 2019.

 

Westwater Resources Overview

 

Westwater Resources, Inc. is a 40-year-old public company trading on the Nasdaq stock exchange under the symbol “WWR.” Originally incorporated in 1977 as Uranium Resources, Inc. to mine uranium in Texas, our company has been reborn as a diversified energy materials developer. Westwater now has a presence in uranium, lithium exploration, and battery-graphite materials after its acquisition of Alabama Graphite Corp. (“AGC” or “Alabama Graphite”) in April 2018. In addition, Westwater recently discovered significant vanadium concentrations at the Coosa Project in Alabama and has an exploration plan available to further investigate the size and extent of those concentrations.

 

Westwater holds battery-graphite development properties in Alabama, exploration properties with lithium exploration potential in Nevada and Utah, two idled uranium production properties in Texas and several uranium properties in Texas and New Mexico. Westwater ceased uranium production in 2009 due to reductions in the price of uranium, although Westwater’s uranium properties and facilities in Texas can be restarted once the price of uranium recovers to acceptable levels.

 

Effective August 21, 2017, we amended our certificate of incorporation to change our name from Uranium Resources, Inc. to Westwater Resources, Inc. to reflect our broader focus on energy materials exploration and development. Our principal executive offices are located at 6950 South Potomac Street, Suite 300, Centennial, Colorado 80112, and our telephone number is (303) 531-0516. Our website is located at www.westwaterresources.net. Information contained on our website or that can be accessed through our website is not incorporated by reference into this prospectus.

 

For additional information as to our business, properties and financial condition, please refer to the documents cited in “Where You Can Find More Information.”

 

Recent Developments

 

On May 24, 2019, the Company entered into a securities purchase agreement, as amended by amendment No. 1 thereto dated as of May 30, 2019 (as so amended, the “securities purchase agreement”), with Lincoln Park Capital Fund, LLC, an Illinois limited liability company (the “Investor” or the “selling stockholder”), pursuant to which the Company issued and sold to the Investor (i) 104,294 shares of the Company’s common stock and (ii) warrants to initially purchase an aggregate of up to 182,515 shares of common stock at an exercise price of $5.062 per share, for an aggregate gross purchase price of $550,751. The transaction closed on May 30, 2019. The warrants will become exercisable upon the six-month anniversary of the closing date and thereafter at any time during the five-year period following such date. If a resale registration statement covering the shares of common stock underlying the warrants is not effective and available at the time of exercise, the warrants may be exercised by means of a “cashless” exercise formula.

 

On May 24, 2019 and in connection with the securities purchase agreement, the Company entered into a customary registration rights agreement with the Investor. The registration rights agreement requires the Company to register the 104,294 shares of common stock issued to the Investor under the securities purchase agreement, which shares are being registered for resale under the registration statement of which this prospectus forms a part.

 

1


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The Offering

 

The following summary is provided solely for your convenience and is not intended to be complete. You should read the full text and more specific details contained elsewhere in this prospectus. For a more detailed description of our common stock, see “Description of Common Stock.”

 

Common stock offered by the selling stockholder

 

104,294 shares of common stock.

 

 

 

Common stock outstanding

 

1,598,218 shares

 

 

 

Use of proceeds

 

The proceeds from the sale of the common stock covered by this prospectus will be received by the selling stockholder. The Company will not receive any of the proceeds from any sale by any selling stockholder of the common stock covered by this prospectus. However, we received proceeds of $550,751 from our sale of common stock and warrants to the selling stockholder, which closed on May 30, 2019, pursuant to a securities purchase agreement we entered into with the selling stockholder, as amended. These proceeds received from our sale of common stock and warrants to the selling stockholder under such securities purchase agreement, as amended, will be used for working capital and general corporate purposes. See “Use of Proceeds.”

 

 

 

Plan of distribution

 

The shares being offered hereby may be offered and sold from time to time by the selling stockholder named herein through public or private transactions at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices. See “Plan of Distribution.”

 

 

 

Nasdaq Capital Market symbol

 

WWR

 

 

 

Risk factors

 

Investing in our common stock involves a high degree of risk. You should carefully consider the risks described in the section entitled “Risk Factors,” as well as any other information in this prospectus, any prospectus supplement and any document incorporated herein by reference, before purchasing our common stock.

 


(1)                     The number of shares of common stock is based on 1,598,218 shares outstanding as of May 30, 2019, and excludes:

 

·                  18,890 shares of common stock issuable upon the exercise of options outstanding as of March 31, 2019, at a weighted average exercise price of $79.78 per share;

 

·                  15,106 shares of common stock issuable upon exercise of warrants outstanding as of March 31, 2019;

 

·                  1,695 shares issuable upon the vesting of restricted stock units outstanding as of March 31, 2019;

 

·                  278 additional shares of common stock reserved for future issuance under our 2013 Omnibus Incentive Plan, as amended, which amount was increased by 66,000 shares following approval by stockholders on April 18, 2019; and

 

·                  182,515 shares of common stock underlying the warrants to purchase common stock that we sold to the selling stockholder, together with the shares of common stock covered by this prospectus, in a private placement we completed on May 30, 2019. The warrants have an exercise price of $5.062 per share and will become exercisable upon the six-month anniversary of the closing date and thereafter at any time during the five-year period following such date.

 

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Summary Consolidated Financial Data

 

The summary data presented below as of and for the two years ended December 31, 2018 have been derived from our audited consolidated financial statements incorporated by reference into this prospectus and include adjustments to reflect the one-for-fifty reverse stock split of our common stock that became effective following the close of trading on April 22, 2019. The summary data presented below as of March 31, 2019 and for the three months ended March 31, 2019 and March 31, 2018 has been derived from our unaudited consolidated financial statements incorporated by reference into this prospectus and include adjustments to reflect the one-for-fifty reverse stock split of our common stock that became effective following the close of trading on April 22, 2019. You should read the summary of our consolidated financial data set forth below together with the more detailed information contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and the related notes contained in our Annual Report on Form 10-K for the year ended December 31, 2018 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, as filed with the SEC on February 15, 2019 and May 7, 2019, respectively, which are incorporated by reference into this prospectus. Our historical financial data may not be indicative of the results of operations or financial position to be expected in the future.

 

 

 

For the three
months ended
March 31,

 

For the years ending
December 31,

 

(USD in thousands)

 

2019

 

2018

 

2018

 

2017

 

Results of operations

 

 

 

 

 

 

 

 

 

Net loss

 

$

(3,174

)

$

(3,419

)

$

(35,684

)

$

(19,288

)

Basic and diluted loss per share

 

$

(2.15

)

$

(6.11

)

$

(38.47

)

$

(38.99

)

 

 

 

As of
March 31,

 

As of December 31,

 

(USD in thousands)

 

2019

 

2018

 

2017

 

Financial position

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,019

 

$

1,577

 

$

4,054

 

Working capital

 

(694

)

1,008

 

3,865

 

Net property, plant and equipment

 

20,529

 

20,553

 

35,409

 

Total assets

 

28,206

 

29,958

 

50,238

 

Total liabilities

 

10,076

 

9,167

 

9,121

 

Total stockholders’ equity

 

$

18,130

 

$

20,791

 

$

41,117

 

 

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RISK FACTORS

 

An investment in our common stock involves a high degree of risk. Before making an investment decision, you should carefully consider the risks described below, as well as the risks described under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018 and in the other filings we make with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended, which we have incorporated herein by reference. Our business, financial condition, results of operations and cash flows could be materially adversely affected by any of these risks, and the market or trading price of our common stock could decline due to any of these risks. In addition, please read “Disclosure Regarding Forward-Looking Statements” in this prospectus, where we describe additional uncertainties associated with our business and the forward-looking statements included or incorporated by reference in this prospectus. Please note that additional risks not presently known to us or that we currently deem immaterial may also impair our business and operations.

 

Risks Relating to Our Common Stock

 

The availability for sale of a large amount of shares may depress the market price of WWR’s common stock.

 

As of May 30, 2019, approximately 1.6 million shares of our common stock were outstanding, all of which are freely transferable. In addition, as of March 31, 2019, 18,890 shares were issuable upon the exercise of outstanding stock options, 15,106 shares were issuable upon the exercise of outstanding warrants, and 1,695 shares were issuable upon the vesting of outstanding restricted stock units. In addition, in a private placement we completed on May 30, 2019, we issued to the selling stockholder warrants to purchase up to 182,515 shares of common stock at an exercise price of $5.062 per share, together with the shares of common stock being registered hereby, for an aggregate gross purchase price of $550,751. The warrants we issued to the selling stockholder will become exercisable upon the six-month anniversary of the closing date and thereafter at any time during the five-year period following such date.

 

The availability for sale of a large amount of shares by any one or several stockholders may depress the market price of our common stock and impair our ability to raise additional capital through the public sale of our common stock. We have no arrangement with any of the holders of the foregoing shares to address the possible effect on the price of our common stock of the sale by them of their shares.

 

Terms of subsequent financings may adversely impact our stockholders.

 

In order to finance our future production plans and working capital needs, we may have to raise funds through the issuance of equity or debt securities. Depending on the type and the terms of any financing we pursue, stockholders’ rights and the value of their investment in our common stock could be reduced. A financing could involve one or more types of securities including common stock, convertible debt or warrants to acquire common stock. These securities could be issued at or below the then prevailing market price for our common stock. We currently have no authorized preferred stock. In addition, if we issue secured debt securities, the holders of the debt would have a claim to our assets that would be prior to the rights of stockholders until the debt is paid. Interest on these debt securities would increase costs and negatively impact operating results. If the issuance of new securities results in diminished rights to holders of our common stock, the market price of our common stock could be negatively impacted.

 

The Company has no history of paying dividends on its common stock, and we do not anticipate paying dividends in the foreseeable future.

 

The Company has not previously paid dividends on its common stock. We currently anticipate that we will retain all of our available cash, if any, for use as working capital and for other general corporate purposes. Any payment of future dividends will be at the discretion of our Board of Directors and will depend upon, among other things, our earnings, financial condition, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends and other considerations that our Board of Directors deems relevant. Investors must rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize a return on their investment.

 

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USE OF PROCEEDS

 

This prospectus relates to shares of our common stock that may be offered and sold from time to time by the selling stockholder. We will not receive any proceeds upon the sale of shares by the selling stockholder. However, we received proceeds of $550,751 under the securities purchase agreement pursuant to which we sold to the selling stockholder the shares of common stock being registered hereby. The proceeds received from the sale of the shares and warrants to the selling stockholder will be used for working capital and general corporate purposes. This anticipated use of net proceeds from the sale of our common stock to the selling stockholder under the securities purchase agreement represents our intentions based upon our current plans and business conditions.

 

MARKET FOR COMMON STOCK AND DIVIDEND POLICY

 

Our common stock is traded on the Nasdaq Capital Market under the symbol “WWR.” The last reported sale price of our common stock on May 31, 2019 on the Nasdaq Capital Market was $5.60 per share. As of February 15, 2019, there were 406 holders of record of our common stock.

 

Following the close of trading on April 22, 2019, the Company effected a one-for-fifty reverse stock split of its issued and outstanding common stock. The common stock commenced trading on the Nasdaq Capital Market on a split-adjusted basis upon the open of trading on April 23, 2019. Unless otherwise noted, all share and per share information in this prospectus has been adjusted to reflect the reverse stock split.

 

We have never declared or paid any cash dividend on our common stock, nor do we currently intend to pay any cash dividend on our common stock in the foreseeable future. We expect to retain our earnings, if any, for the growth and development of our business.

 

SELLING STOCKHOLDER

 

On May 24, 2019, the Company entered into a securities purchase agreement, as amended by Amendment No. 1 thereto dated as of May 30, 2019 (as so amended, the “securities purchase agreement”), with Lincoln Park Capital Fund, LLC, an Illinois limited liability company (the “Investor” or “selling stockholder”), pursuant to which the Company issued and sold to the Investor (i) 104,294 shares of the Company’s common stock and (ii) warrants to initially purchase an aggregate of up to 182,515 shares of common stock at an exercise price of $5.062 per share, for an aggregate gross purchase price of $550,751. The transaction closed on May 30, 2019. The warrants will become exercisable upon the six-month anniversary of the closing date and thereafter at any time during the five-year period following such date. If a resale registration statement covering the shares of common stock underlying the warrants is not effective and available at the time of exercise, the warrants may be exercised by means of a “cashless” exercise formula. The securities issued and sold (and to be issued and sold upon exercise of the warrants) to the selling stockholder were offered and sold pursuant to the exemption from the registration requirements of the Securities Act afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D thereunder.

 

Concurrently with the execution of the securities purchase agreement on May 24, 2019, the Company entered into a customary registration rights agreement with the Investor. The registration rights agreement requires the Company to register the 104,294 shares of common stock issued to the Investor under the securities purchase agreement, which shares are the subject of the registration statement of which this prospectus forms a part.

 

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Shares Covered by this Prospectus

 

We are registering the shares to permit the selling stockholder and its pledgees, donees, transferees and other successors-in-interest that receive their shares from the selling stockholder as a gift, partnership distribution or other non-sale related transfer after the date of this prospectus to resell the shares when and as they deem appropriate.

 

The following table sets forth:

 

·      the name of the selling stockholder;

 

·      the number and percent of shares of our common stock that the selling stockholder beneficially owns prior to the offering for resale of the shares under this prospectus;

 

·      the number of shares of our common stock that may be offered for resale for the account of the selling stockholder under this prospectus; and

 

·      the number and percent of shares of our common stock to be beneficially owned by the selling stockholder after the offering of the resale shares (assuming all of the offered resale shares are sold by the selling stockholder).

 

The number of shares in the column “Number of Shares Being Offered” represents all of the shares that the selling stockholder may offer under this prospectus. We do not know how long the selling stockholder will hold the shares before selling them or how many shares the selling stockholder will sell and we currently have no agreements, arrangements or understandings with the selling stockholder regarding the sale of any of the resale shares. The shares offered by this prospectus may be offered from time to time by the selling stockholder listed below.

 

This table is prepared solely based on information supplied to us by the listed selling stockholder, any Schedules 13D or 13G and Forms 3 and 4, and other public documents filed with the SEC, and assumes the sale of all of the resale shares. The applicable percentages of beneficial ownership are based on an aggregate of 1,598,218 shares of our common stock outstanding on May 30, 2019.

 

 

 

Shares Beneficially
Owned Prior to Offering

 

Number of
Shares Being
Offered

 

Shares Beneficially
Owned After Offering(1)

 

Stockholder

 

Number

 

%

 

 

Number

 

%

 

Lincoln Park Capital Fund, LLC(2)

 

104,294

(3)

6.5

%

104,294

 

0

(3)

*

 

TOTAL

 

104,294

 

6.5

%

104,294

 

0

 

*

 

 


*                             Represents less than 1%

 

(1)                     Assumes the sale of all shares of common stock registered on the registration statement of which this prospectus forms a part, although the selling stockholder is under no obligation known to us to sell any shares of common stock at this time.

 

(2)                     Josh Scheinfeld and Jonathan Cope, the Managing Members of Lincoln Park Capital, LLC, are deemed to be beneficial owners of all of the shares of common stock owned by Lincoln Park Capital Fund, LLC. Messrs. Cope and Scheinfeld have shared voting and investment power over the shares being offered under the prospectus filed with the SEC in connection with the transactions contemplated under the securities purchase agreement. Lincoln Park Capital, LLC is not a licensed broker dealer or an affiliate of a licensed broker dealer.

 

(3)                     As of May 30, 2019, Lincoln Park beneficially owned 104,294 shares of our common stock, which shares were issued to Lincoln Park on May 30, 2019 in a private placement transaction.  Does not include 182,515 shares of common stock underlying the warrants which were issued to Lincoln Park in such private placement transaction on May 30, 2019, because such warrants are not exercisable until the six-month anniversary of the closing date, which is more than 60 days from the date of this prospectus.

 

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Such warrants also include a beneficial ownership cap which prohibits the issuance of any shares of common stock upon exercise of such warrants if such issuance would cause Lincoln Park’s beneficial ownership of our common stock to exceed 9.9% of our outstanding common stock.

 

PLAN OF DISTRIBUTION

 

The selling stockholder, which term includes its transferees, pledgees or donees or its successors-in-interest, may sell the shares being offered from time to time in one or more transactions:

 

·      on the Nasdaq Capital Market or otherwise;

 

·      in ordinary brokers’ transactions, which may include long or short sales;

 

·      in transactions involving cross or block trades or otherwise in the over-the-counter market;

 

·      through broker-dealers, who may act as agents or principals;

 

·      in “at the market” offerings to or through market makers into an existing market for the shares;

 

·      in other ways not involving market makers or established markets, including direct sales to purchasers in negotiated transactions;

 

·      through a bidding or auction process;

 

·      through one or more underwriters on a firm commitment or best efforts basis;

 

·      through the writing of options, swaps or other derivatives, whether listed on an exchange or otherwise; or

 

·      through a combination of such methods of sale or by any other legally available means.

 

In addition, subject to compliance with applicable law, the selling stockholder may enter into option, derivative or hedging transactions with broker-dealers who may engage in short sales of common stock in the course of hedging the positions they assume with the selling stockholder, and any related offers or sales of shares may be made under this prospectus. In some circumstances, for example, the selling stockholder may write call options, put options or other derivative instruments with respect to the shares, which the selling stockholder settles through delivery of the shares. These option, derivative and hedging transactions may require the delivery to a broker, dealer or other financial institution of shares offered under this prospectus, and that broker, dealer or other financial institution may resell those shares under this prospectus.

 

The selling stockholder may sell the shares at market prices prevailing at the time of sale, at prices related to those market prices, at negotiated prices or at fixed prices, which may be changed from time to time. The selling stockholder also may sell the shares pursuant to Rule 144 or other available exemptions adopted under the Securities Act. The selling stockholder may effect transactions by selling shares directly to purchasers or to or through broker-dealers. The broker-dealers may act as agents or principals. Broker-dealers, underwriters or agents may receive compensation in the form of discounts, concessions or commissions from the selling stockholder or the purchasers of the shares, or both. The compensation of any particular broker-dealer, underwriter or agent may be in excess of customary commissions.

 

The selling stockholder and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within the meaning of Section 2(a)(11) of the Securities Act in connection with such sales.  In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. If the selling stockholder or any broker-dealer that participates with the selling stockholder in the distribution of shares is deemed to be an “underwriter” within the meaning of the Securities Act, the selling stockholder and such broker-dealer may be subject to the prospectus delivery requirements of the Securities Act.

 

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The selling stockholder may donate, pledge or otherwise transfer its shares in a non-sale related transaction to any person so long as the transfer complies with applicable securities laws. As a result, donees, pledgees, transferees and other successors in interest that receive such shares as a gift, distribution or other non-sale related transfer may offer shares of common stock under this prospectus.

 

The selling stockholder has advised us that it has not entered into any agreements, understandings or arrangements with any underwriters or broker-dealers regarding the sale of its securities. There is no underwriter or coordinating broker acting in connection with the proposed sale of shares by the selling stockholder.

 

The shares will be sold through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states the shares may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

 

Under applicable rules and regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), any person engaged in the distribution of the shares may not simultaneously engage in market making activities with respect to our common stock for a period of two business days prior to the commencement of such distribution. In addition, the selling stockholder will be subject to applicable provisions of the Exchange Act and the associated rules and regulations under the Exchange Act, including Regulation M, which provisions may limit the timing of purchases and sales of shares of our common stock by the selling stockholder. Certain persons participating in an offering may engage in over-allotment, stabilizing transactions, short-covering transactions and penalty bids in accordance with Regulation M under the Exchange Act that stabilize, maintain or otherwise affect the price of the offered securities. If any such activities may occur, they will be described in an applicable prospectus supplement or a document incorporated by reference to the extent required. We will make copies of this prospectus available to the selling stockholder and have informed the selling stockholder that if it is deemed to be an underwriter, the selling stockholder will need to deliver copies of this prospectus to purchasers at or prior to the time of any sale of the shares.

 

We will receive no proceeds from the sale of shares by selling stockholder pursuant to this prospectus. We will bear all costs, expenses and fees in connection with the registration of the shares, except that the selling stockholder will bear all commissions and discounts, if any, attributable to the sales of the shares. We will indemnify the selling stockholder, and the selling stockholder will indemnify us, and may agree to indemnify any underwriter, broker-dealer or agent that participates in transactions involving sales of the shares, against certain liabilities, including liabilities arising under the Securities Act.

 

Upon notification to us by the selling stockholder that any material arrangement has been entered into with a broker-dealer or other agent for the sale or purchase of shares, including through a block trade, special offering, exchange distribution, secondary distribution, or purchase by a broker or dealer, we will file a supplement to this prospectus, if required, disclosing:

 

·      the name of the participating broker-dealers;

 

·      the number of shares involved;

 

·      the price at which such shares were sold;

 

·      the commissions paid or discounts or concessions allowed to such broker-dealers, where applicable;

 

·      that such broker-dealers did not conduct any investigation to verify the information set out or incorporated by reference in this prospectus; and

 

·      other facts material to the transaction.

 

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A prospectus supplement or document incorporated by reference may be filed to disclose additional information with respect to any sale or other distribution of the shares.

 

We agreed to keep the registration statement of which this prospectus is a part effective until the earlier of (i) the date on which the securities may be resold by the selling stockholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for the Company to be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect.

 

DESCRIPTION OF COMMON STOCK

 

Our certificate of incorporation authorizes us to issue 100,000,000 shares of common stock, par value $0.001 per share. As of May 30, 2019, there were 1,598,371 shares of our common stock issued and 1,598,218 shares of our common stock outstanding, all of which are fully paid and non-assessable. As of March 31, 2019, there were 18,890 shares of common stock issuable upon the exercise of outstanding options, 15,106 shares of common stock issuable upon exercise of outstanding warrants, 1,695 shares issuable upon the vesting of outstanding restricted stock units, and 278 shares of common stock reserved for future issuance under our 2013 Omnibus Incentive Plan, as amended, which amount was increased by 66,000 shares following approval by stockholders on April 18, 2019.

 

Each share of our common stock is entitled to one vote for all purposes and cumulative voting is not permitted in the election of directors. Accordingly, the holders of more than fifty percent of all of the outstanding shares of our common stock can elect all of the directors. Matters to be voted upon by the holders of our common stock require the affirmative vote of a majority of the votes cast at a stockholders meeting at which a quorum is present.

 

There are no preemptive, subscription, conversion or redemption rights pertaining to our common stock. The absence of preemptive rights could result in a dilution of the interest of existing stockholders should additional shares of common stock be issued. Holders of our common stock are entitled to receive such dividends as may be declared by our Board of Directors out of assets legally available and to share ratably in our assets upon liquidation.

 

Computershare Trust Company is the transfer agent and registrar for our common stock.

 

Following the close of trading on April 22, 2019, the Company effected a one-for-fifty reverse stock split of its issued and outstanding common stock. The common stock commenced trading on the Nasdaq Capital Market on a split-adjusted basis upon the open of trading on April 23, 2019. Such reverse stock split reduced the number of our outstanding common stock from approximately 74.7 million shares to approximately 1.5 million shares of common stock.

 

Our common stock is listed on the Nasdaq Capital Market under the symbol “WWR.”

 

Possible Anti-Takeover Effects of Delaware Law and our Certificate of Incorporation and Bylaws

 

Certain provisions of Delaware law, our restated certificate of incorporation and our amended and restated bylaws discussed below could discourage or make it more difficult to accomplish a proxy contest or other change in our management or the acquisition of control by a holder of a substantial amount of our common stock. It is possible that these provisions could make it more difficult to accomplish, or could deter, transactions that stockholders may otherwise consider to be in their best interests or in our best interests. These provisions are intended to enhance the likelihood of continuity and stability in the composition of our Board of Directors and in the policies formulated by the Board of Directors and may discourage certain types of transactions that may involve an actual or threatened change of control of us. The provisions also are intended to discourage certain tactics that may be used in proxy fights. Such provisions also may have the effect of preventing changes in our management.

 

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Delaware Statutory Business Combinations Provision

 

We are subject to the anti-takeover provisions of Section 203 of the Delaware General Corporation Law. In general, Section 203 prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date of the transaction in which the person became an interested stockholder, unless the business combination is, or the transaction in which the person became an interested stockholder was, approved in a prescribed manner or another prescribed exception applies. For purposes of Section 203, a “business combination” is defined broadly to include a merger, asset sale or other transaction resulting in a financial benefit to the interested stockholder, and, subject to certain exceptions, an “interested stockholder” is a person who, together with his or her affiliates and associates, owns (or within three years prior, did own) 15% or more of the corporation’s voting stock.

 

Authorized but Unissued Stock

 

Our restated certificate of incorporation authorizes the issuance of up to 100,000,000 shares of capital stock, par value $0.001 per share. As of May 30, 2019, 1,598,371 shares of our common stock were issued and 1,598,218 shares of our common stock were outstanding. Our Board of Directors has the authority, without further approval of the stockholders, to issue such shares, which would adversely affect the voting power and ownership interest of holders of our common stock. This authority may have the effect of deterring hostile takeovers, delaying or preventing a change in control, and discouraging bids for our common stock at a premium over the market price.

 

Advance Notice Provisions for Stockholder Proposals and Stockholder Nominations of Directors

 

Our amended and restated bylaws provide that, for nominations to the Board of Directors or for other business to be properly brought by a stockholder before a meeting of stockholders, the stockholder must first have given timely notice of the proposal in writing to our Secretary. For an annual meeting, a stockholder’s notice generally must be delivered not less than 90 days nor more than 120 days prior to the first anniversary of the preceding year’s annual meeting. Detailed requirements as to the form of the notice and information required in the notice are specified in the amended and restated bylaws. If it is determined that business was not properly brought before a meeting in accordance with our bylaw provisions, such business will not be conducted at the meeting.

 

Amendment of Bylaws

 

Our Board of Directors is expressly authorized to alter or repeal our bylaws.

 

Special Meetings of Stockholders

 

Special meetings of the stockholders may be called only by our Chairman, President or pursuant to a resolution adopted by a majority of the total number of directors. Stockholders may not propose business to be brought before a special meeting of the stockholders.

 

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LEGAL MATTERS

 

The validity of the common stock offered by this prospectus will be passed upon for us by Hogan Lovells US LLP, Denver, Colorado.

 

EXPERTS

 

The consolidated financial statements of Westwater Resources, Inc. for the fiscal years ended December 31, 2018 and December 31, 2017 incorporated in this prospectus by reference from Westwater Resources, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018 have been audited by Moss Adams LLP, an independent registered public accounting firm, as stated in their report, which is incorporated herein by reference.  Such consolidated financial statements have been so incorporated in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

 

WHERE YOU CAN FIND MORE INFORMATION

 

This prospectus forms part of a registration statement on Form S-3 filed by us with the SEC under the Securities Act. As permitted by the SEC, this prospectus does not contain all the information set forth in the registration statement filed with the SEC. For a more complete understanding of this offering, you should refer to the complete registration statement, including the exhibits thereto, on Form S-3 that may be obtained as described below. Statements contained or incorporated by reference in this prospectus or any prospectus supplement about the contents of any contract or other document are not necessarily complete. If we have filed any contract or other document as an exhibit to the registration statement or any other document incorporated by reference in the registration statement of which this prospectus forms a part, you should read the exhibit for a more complete understanding of the document or matter involved. Each statement regarding a contract or other document is qualified in its entirety by reference to the actual document.

 

We file annual, quarterly and special reports, proxy statements and other information with the SEC. Our SEC filings are available to the public from commercial retrieval services and at the website maintained by the SEC at www.sec.gov. The reports and other information filed by us with the SEC are also available at our website. The address of the Company’s website is www.westwaterresources.net. Information contained on our website or that can be accessed through our website is not incorporated by reference into this prospectus.

 

INFORMATION INCORPORATED BY REFERENCE

 

The SEC allows us to incorporate information into this prospectus “by reference,” which means that we can disclose important information to you by referring you to another document that we file separately with the SEC. The information incorporated by reference is deemed to be part of this prospectus, except for any information superseded by information contained directly in this prospectus. These documents contain important information about the Company and its financial condition, business and results.

 

We are incorporating by reference the Company’s filings listed below and any additional documents that we may file with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act on or after the date hereof and prior to the termination of the offering, except we are not incorporating by reference any information furnished (but not filed) under Item 2.02 or Item 7.01 of any Current Report on Form 8-K and corresponding information furnished under Item 9.01 as an exhibit thereto:

 

·                  our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the SEC on February 15, 2019;

 

·                  the portions of our definitive proxy statement on Schedule 14A filed February 25, 2019 specifically incorporated by reference in Part III of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018;

 

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·                  our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, filed with the SEC on May 7, 2019;

 

·                  our Current Reports on Form 8-K filed with the SEC on March 7, 2019, March 15, 2019, April 18, 2019, April 22, 2019, May 9, 2019 and May 31, 2019 (except that any portions thereof which are furnished and not filed shall not be deemed incorporated); and

 

·                  the description of our common stock contained in our Form 8-A filed on April 11, 2007, including any amendments or reports filed for the purpose of updating the description.

 

We will provide, without charge, to each person to whom a copy of this prospectus has been delivered, including any beneficial owner, a copy of any and all of the documents referred to herein that are summarized in this prospectus, if such person makes a written or oral request directed to:

 

Westwater Resources, Inc.

6950 South Potomac Street, Suite 300

Centennial, Colorado 80112

Attn: Corporate Secretary

(303) 531-0516

 

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PART II
INFORMATION NOTE REQUIRED IN THE PROSPECTUS

 

Item 14.  Other Expenses of Issuance and Distribution.

 

The following table sets forth an estimate of the fees and expenses relating to the issuance and distribution of the securities being registered hereby, other than underwriting discounts and commissions, all of which shall be borne by Westwater Resources, Inc. (the “Company”). All of such fees and expenses, except for the Securities and Exchange Commission (“SEC”) registration fee, are estimated:

 

SEC registration fee

 

$

78

 

Legal fees and expenses

 

30,000

 

Accounting fees and expenses

 

5,000

 

Miscellaneous fees and expenses

 

2,422

 

Total Expenses

 

$

37,500

 

 

Item 15.  Indemnification of Directors and Officers.

 

Under Delaware law, a corporation may indemnify any person who was or is a party or is threatened to be made a party to an action (other than an action by or in the right of the corporation) by reason of his service as a director or officer of the corporation, or his service, at the corporation’s request, as a director, officer, employee or agent of another corporation or other enterprise, against expenses (including attorneys’ fees) that are actually and reasonably incurred by him (“Expenses”), and judgments, fines and amounts paid in settlement that are actually and reasonably incurred by him, in connection with the defense or settlement of such action, provided that he acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation’s best interests, and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his conduct was unlawful. Although Delaware law permits a corporation to indemnify any person referred to above against Expenses in connection with the defense or settlement of an action by or in the right of the corporation, provided that he acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation’s best interests, if such person has been judged liable to the corporation, indemnification is only permitted to the extent that the Court of Chancery (or the court in which the action was brought) determines that, despite the adjudication of liability, such person is entitled to indemnity for such Expenses as the court deems proper. The Delaware General Corporation Law (the “DGCL”) also provides for mandatory indemnification of any director, officer, employee or agent against Expenses to the extent such person has been successful in any proceeding covered by the statute. In addition, the DGCL provides the general authorization of advancement of a director’s or officer’s litigation expenses in lieu of requiring the authorization of such advancement by the Board of Directors in specific cases, and that indemnification and advancement of expenses provided by the statute shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement or otherwise.

 

Our amended and restated bylaws and restated certificate of incorporation provide for indemnification of our directors and officers and for advancement of litigation expenses to the fullest extent permitted by current Delaware law. In addition, the Company has entered into an indemnification agreement with each director and officer that provides for indemnification and advancement of litigation expenses to fullest extent permitted by the DCGL.

 

We maintain a policy of directors and officers liability insurance which reimburses us for expenses which we may incur in connection with the foregoing indemnity provisions and which may provide direct indemnification to directors and officers where we are unable to do so.

 

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the above, we have been advised that in the opinion of the SEC

 

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such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

 

Item 16.  Exhibits.

 

Exhibit
Number

 

Description

 

 

 

1.1

 

Controlled Equity OfferingSM Sales Agreement, dated April 14, 2017, between the Company and Cantor Fitzgerald & Co. (incorporated by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K filed on April 17, 2017).

 

 

 

2.1

 

Asset Purchase Agreement, dated March 5, 2019, among the Company, Uranium Royalty (USA) Corp., and Uranium Royalty Corp. (incorporated by reference to Exhibit 2.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019).

 

 

 

4.1

 

Restated Certificate of Incorporation of the Company, as amended through August 21, 2017 (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017).

 

 

 

4.2

 

Amended and Restated Bylaws of the Company, as amended August 21, 2017 (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017).

 

 

 

5.1

 

Opinion of Hogan Lovells US LLP as to the legality of the securities being registered.

 

 

 

23.1

 

Consent of Hogan Lovells US LLP (included in Exhibit 5.1).

 

 

 

23.2

 

Consent of Independent Registered Public Accounting Firm.

 

 

 

24

 

Power of Attorney (included on signature page).

 

 

 

99.1

 

Securities Purchase Agreement, dated as of May 24, 2019, by and between the Company and Lincoln Park Capital Fund, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 31, 2019).

 

 

 

99.2

 

Amendment No. 1 to Securities Purchase Agreement, dated as of May 30, 2019, by and between the Company and Lincoln Park Capital Fund, LLC (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on May 31, 2019).

 

 

 

99.3

 

Registration Rights Agreement, dated as of May 24, 2019, by and between the Company between the Company and Lincoln Park Capital Fund, LLC (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on May 31, 2019).

 

Item 17.  Undertakings.

 

(a)                     The undersigned registrant hereby undertakes:

 

(1)                     To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

 

(i)                       To include any prospectus required by Section 10(a)(3) of the Securities Act;

 

(ii)                    To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price

 

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represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and

 

(iii)                 To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

 

provided, however, that subparagraphs (i), (ii) and (iii) above do not apply if the information required to be included in a post-effective amendment by those subparagraphs is contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are incorporated by reference in the registration statement.

 

(2)                     That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

(3)                     To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

 

(4)                     That, for the purpose of determining liability under the Securities Act to any purchaser:

 

(i)                         Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and

 

(ii)                      Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.

 

(5)                     That, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities: the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

 

II-3


Table of Contents

 

(i)                         Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

 

(ii)                      Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

 

(iii)                   The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

 

(iv)                  Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

 

(b)                     The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the registrant’s annual report pursuant to section 13(a) or section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d) of the Exchange Act), that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

(c)                      Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

 

II-4


Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Centennial, State of Colorado, on the 3rd day of June, 2019.

 

 

WESTWATER RESOURCES, INC.

 

 

 

 

By:

/s/ Christopher M. Jones

 

Name:

Christopher M. Jones

 

Title:

President and Chief Executive Officer

 

POWER OF ATTORNEY

 

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Messrs. Christopher M. Jones and Jeffrey L. Vigil and each of them severally as such person’s true and lawful attorney-in-fact and agent, each with full power of substitution and resubstitution, for such person and in such person’s name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and any registration statement relating to the offering covered by this Registration Statement filed pursuant to Rule 462 under the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto each said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as such person might, or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent or any substitute therefor, may lawfully do or cause to be done by virtue hereof.

 

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

 

Signature

 

Title

 

Date

 

 

 

 

 

/s/ Christopher M. Jones

 

President, Chief Executive Officer and Director (Principal Executive Officer)

 

June 3, 2019

Christopher M. Jones

 

 

 

 

 

 

/s/ Jeffrey L. Vigil

 

Vice President — Finance and Chief Financial Officer (Principal Financial and Accounting Officer)

 

June 3, 2019

Jeffrey L. Vigil

 

 

 

 

 

 

/s/ Terence J. Cryan

 

 

 

 

Terence J. Cryan

 

Director and Chairman

 

June 3, 2019

 

 

 

 

 

/s/ Karli S. Anderson

 

 

 

 

Karli S. Anderson

 

Director

 

June 3, 2019

 

 

 

 

 

/s/ Marvin K. Kaiser

 

 

 

 

Marvin K. Kaiser

 

Director

 

June 3, 2019

 

 

 

 

 

/s/ Tracy D. Pagliara

 

 

 

 

Tracy D. Pagliara

 

Director

 

June 3, 2019

 

II-5


EX-5.1 2 a19-11015_1ex5d1.htm EX-5.1

Exhibit 5.1

 

Hogan Lovells US LLP

1601 Wewatta Street

Suite 900

Denver, Colorado 80202

T  +1 303 899 7300

F  +1 303 899 7333

www.hoganlovells.com

 

June 3, 2019

 

Board of Directors

Westwater Resources, Inc.

6950 South Potomac Street, Suite 300

Centennial, Colorado 80112

 

Ladies and Gentlemen:

 

We are acting as counsel to Westwater Resources, Inc., a Delaware corporation (the “Company”), in connection with its registration statement on Form S-3 (the “Registration Statement”), filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Act”), relating to the resale from time to time by the selling stockholder identified in the prospectus constituting part of the Registration Statement of 104,294 shares of common stock, par value $0.001 per share issued in a private placement on May 30, 2019, pursuant to that certain Securities Purchase Agreement, dated May 24, 2019, by and between the Company and Lincoln Park Capital Fund, LLC, as amended (the “Outstanding Shares”).  This opinion letter is furnished to you at your request to enable you to fulfill the requirements of Item 601(b)(5) of Regulation S-K, 17 C.F.R. § 229.601(b)(5), in connection with the Registration Statement.

 

For purposes of this opinion letter, we have examined copies of such agreements, instruments and documents as we have deemed an appropriate basis on which to render the opinions hereinafter expressed.   In our examination of the aforesaid documents, we have assumed the genuineness of all signatures, the legal capacity of all natural persons, the accuracy and completeness of all documents submitted to us, the authenticity of all original documents and the conformity to authentic original documents of all documents submitted to us as copies (including pdfs).  As to all matters of fact, we have relied on the representations and statements of fact made in the documents so reviewed, and we have not independently established the facts so relied on.  This opinion letter is given, and all statements herein are made, in the context of the foregoing.

 

This opinion letter is based as to matters of law solely on the Delaware General Corporation Law, as amended. We express no opinion herein as to any other statutes, rules, or regulations.

 

Based upon, subject to and limited by the foregoing, we are of the opinion that the Outstanding shares are validly issued, fully paid and non-assessable; and

 

This opinion letter has been prepared for use in connection with the Registration Statement.  We assume no obligation to advise of any changes in the foregoing subsequent to the date of this opinion letter.

 

We hereby consent to the filing of this opinion letter as Exhibit 5.1 to the Company’s Registration Statement and to the reference to this firm under the caption “Legal Matters” in the prospectus constituting a part of the Registration Statement.  In giving this consent, we do not thereby admit that we are an “expert” within the meaning of the Act.

 

Hogan Lovells US LLP is a limited liability partnership registered in the District of Columbia.  “Hogan Lovells” is an international legal practice that includes Hogan Lovells US LLP and Hogan Lovells International LLP, with offices in:  Alicante   Amsterdam   Baltimore   Beijing   Brussels   Caracas   Colorado Springs   Denver   Dubai   Dusseldorf   Frankfurt   Hamburg   Hanoi   Ho Chi Minh City   Hong Kong   Houston   Johannesburg   London   Los Angeles   Luxembourg   Madrid   Mexico City   Miami   Milan   Minneapolis   Monterrey   Moscow   Munich   New York   Northern Virginia   Paris   Perth   Philadelphia   Rio de Janeiro   Rome   San Francisco   São Paulo   Shanghai   Silicon Valley   Singapore   Sydney   Tokyo   Ulaanbaatar   Warsaw   Washington DC   Associated offices: Budapest   Jakarta   Shanghai FTZ   Zagreb.  Business Service Centers:  Johannesburg   Louisville.  Legal Service Center: Birmingham.  For more information see www.hoganlovells.com

 


 

Very truly yours,

 

/s/ Hogan Lovells US LLP

HOGAN LOVELLS US LLP

 

2


EX-23.2 3 a19-11015_1ex23d2.htm EX-23.2

Exhibit 23.2

 

Consent of Independent Registered Public Accounting Firm

 

We consent to the incorporation by reference in this Registration Statement (Form S-3) of Westwater Resources, Inc. of our report dated February 15, 2019, relating to the consolidated financial statements of Westwater Resources, Inc. (which report appears in the Form 10-K of Westwater Resources, Inc. for the year ended December 31, 2018 and expresses an unqualified opinion and includes an explanatory paragraph regarding going concern uncertainty), and to the reference to our firm under the heading “Experts” in the Prospectus, which is part of this Registration Statement.

 

/s/ Moss Adams LLP

 

Denver, Colorado

June 3, 2019

 


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