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WINNIPEG - Snow Lake Resources Ltd., also known as Snow Lake Energy (NASDAQ: LITM), a company engaged in uranium exploration and development in North America with a market capitalization of $40.57 million, has declared that it will implement a 1-for-13 reverse stock split of its common shares. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, though it has been rapidly burning through its cash reserves. The action, approved by the company’s board of directors on April 11, 2025, and by shareholders on May 8, 2024, is set to take effect at 1:01 a.m. Eastern Time on Friday, May 2, 2025.
The reverse stock split is aimed at meeting the Nasdaq’s minimum bid price requirement of $1.00 for continued listing. The stock, currently trading at $0.44, has seen a significant decline of over 50% in the past year, though InvestingPro analysis suggests the stock may be undervalued at current levels. Get access to detailed valuation metrics and 8 additional exclusive ProTips by subscribing to InvestingPro. Once the reverse split is effective, the common shares will trade on the Nasdaq Capital Market under the existing ticker symbol "LITM," with a new CUSIP number 83336J307.
This corporate action will consolidate 13 existing shares into one new share, proportionally adjusting the company’s outstanding stock options, warrants, and restricted share units. The number of issued and outstanding common shares will decrease from approximately 101.7 million to about 7.8 million. The company’s authorized number of shares and the par value of common shares will remain unchanged.
No fractional shares will be issued. Shareholders who would own a fraction of a share will be rounded down to the nearest whole number and compensated with cash in lieu of their fractional shares. Shareholders with shares held electronically in book-entry form or through a broker need not take action, as their holdings will be automatically adjusted. However, those with physical stock certificates will be required to exchange them for new certificates reflecting the post-split amount.
Snow Lake Resources Ltd., operating under the name Snow Lake Energy, is listed on the Nasdaq and maintains a portfolio of critical mineral projects, including the Pine Ridge Uranium project in Wyoming, USA, and the Engo Valley Uranium Project in Namibia, among others. Financial health indicators from InvestingPro show the company maintains a healthy current ratio of 2.69, with liquid assets exceeding short-term obligations, though it remains unprofitable with an EBITDA of -$4.33 million in the last twelve months.
The information provided here is based on a press release statement from Snow Lake Resources Ltd.
In other recent news, Snow Lake Resources Ltd., also known as Snow Lake Energy, has announced a Strategic Growth Plan to diversify its investments into the Solana blockchain infrastructure and clean energy technologies. The company aims to strengthen its balance sheet and create long-term value for shareholders by aligning with global electrification trends. Additionally, Snow Lake has commenced Phase 2 of its drill program at the Engo Valley Uranium Project in Namibia, aiming to establish a robust database for a maiden uranium mineral resource estimate by the second half of 2025. Snow Lake has also committed to investing approximately A$5.8 million in Global Uranium and Enrichment Limited, acquiring a 19.99% interest as part of a larger equity raise. This investment is contingent on shareholder approval and due diligence completion. Furthermore, the company stands to gain from a recent Executive Order prioritizing uranium as a critical mineral, potentially benefiting its joint venture on the Pine Ridge Uranium Project in Wyoming. This order is expected to expedite permitting and provide increased access to federal financing. Meanwhile, Nova Minerals Ltd. has disclosed its interim financial statements for the second half of 2024, offering insights into its financial health and operational outcomes without specific figures disclosed.
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