FOR IMMEDIATE RELEASE:
Contact: Terry Badger
Director of Communications
210.308.1221
tbadger@usfunds.com
U.S. GLOBAL INVESTORS ADJOURNS SPECIAL SHAREHOLDERS' MEETING;
PROXIES RECEIVED SHOW STRONG SUPPORT FOR PROPOSED AMENDMENTS
- --------------------------------------------------------------------------------
SAN ANTONIO--January 12, 2007-- Proxies have been submitted by shareholders
representing nearly half of the publicly traded shares of U.S. Global Investors,
Inc. (NASDAQ: GROW). Of the proxies received, more than 93% are in favor of
Proposal One and more than 80% are in favor of Proposal Two. However, because
less than a majority of the holders of the publicly traded Class A Common Stock
had submitted their proxies when the special meeting was convened, which the
company believes is due in large part to the holiday season, the company had not
yet attained a quorum and adjourned its special meeting.
U.S. Global shareholders now have additional time to cast their votes and the
company will continue to solicit votes on the two proposals. Proposal One would
increase authorized shares to enable the company to effect a two-for-one stock
split. Proposal Two would modify the relative dividend and liquidation
preference rights of the different classes of common stock and permit conversion
of Class C Common Stock to Class A Common Stock. The U.S. Global special meeting
will reconvene on January 31, 2007 at 9:00 a.m. Central time at 7900 Callaghan
Road, San Antonio, Texas 78229. The record date for shareholders entitled to
vote at the special meeting remains November 20, 2006.
Under Texas law, approval of Proposal One and Proposal Two requires the
affirmative vote of two-thirds of all issued and outstanding shares of U.S.
Global's Class A Common Stock and Class C Common Stock, voting separately by
class.
"The adjournment will allow additional time for all shareholders who had the
right to vote as a result of share ownership on November 20, 2006 to vote,"
Frank Holmes, Chief Executive Officer and Chief Investment Officer of U.S.
Global, said. "We believe providing additional time to vote is in the best
interest of the shareholders and that it is clear from the initial votes cast
that the shareholders desire that these amendments be approved. We thank the
large number of shareholders who have submitted proxies in support of the
proposals. The Board of Directors has unanimously approved the proxy proposals,
and has recommended that eligible shareholders of record on November 20, 2006
vote FOR approval of both proposals."
A failure to vote has the same effect as a vote against the proposals. Any
shareholder who held shares through their broker, bank or other custodian at the
close of business on November 20, 2006, should contact such custodian to receive
proxy materials and vote their shares.
If both proposals are approved, shareholders of record on February 7, 2007, will
receive a special dividend of $0.25 per share based on the number of post-split
shares held. This dividend will be paid on February 16, 2007.
Valid proxies submitted by U.S. Global shareholders prior to the January 10,
2007, meeting will continue to be valid for purposes of the reconvened meeting.
As more fully described in the Proxy Statement, U.S. Global shareholders are
entitled to change their votes or revoke their proxies at any time prior to the
vote being taken. Any shareholder who has executed a proxy but who is present at
the continuation of the special meeting on January 31, 2007, and who wishes to
vote in person on the Proposals may do so by revoking his or her proxy in
writing at the continuation of the special meeting. Therefore, the final results
of voting at the special meeting, once reconvened, could differ materially from
the initial count above.
A postcard is being sent to shareholders providing details about the new time
and location for the meeting.
Last-minute voting instructions
U.S. Global shareholders as of the November 20, 2006 record date can vote, even
if they have subsequently sold their shares:
By Phone: Call our Proxy Client Service Center at (877) 777-3412. Please refer
to your proxy vote card for your Control Number. You can vote using this method
even if you have lost or discarded your proxy card.
By Internet: Go to www.proxyvote.com. Please enter the Control Number on your
proxy vote card and click the "Vote" button under "Postal Mail Recipients." The
online ballot will then appear.
By Mail: Sign, date and return your proxy vote card in the postage-paid envelope
enclosed with the proxy.
U.S. GLOBAL STRONGLY ADVISES ALL SHAREHOLDERS OF THE COMPANY TO READ THE PROXY
STATEMENT AND OTHER PROXY MATERIALS RELATING TO THE SPECIAL MEETING BECAUSE THEY
CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS ARE AVAILABLE AT NO CHARGE
ON THE SECURITIES AND EXCHANGE COMMISSION'S WEB SITE AT HTTP://WWW.SEC.GOV. In
addition, a shareholder who wishes to receive a copy of THE DEFINITIVE proxy
materials, without charge, should submit this request to U.S. Global's proxy
solicitor, ADP, at 57 Mercedes Way, Edgewood, New York 11707 or by calling ADP
toll-free at (877) 777-3412.
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser
that focuses on profitable niche markets around the world. Headquartered in San
Antonio, Texas, the company offers financial solutions and provides transfer
agency and other services to U.S. Global Investors Funds and U.S. Global
Accolade Funds.
With an average of $4.8 billion in assets under management in the quarter ended
September 30, 2006, U.S. Global Investors manages 13 no-load mutual funds that
offer a variety of investment options, from emerging markets to money markets.
In general, trends in the assets under management are the critical drivers of
revenue and earnings trends.
This news release includes forward-looking statements concerning the Company.
These may include statements of plans or objectives for future operations,
statements about future economic performance or assumptions or estimates. The
accuracy of these forward-looking statements is subject to a wide range of
business risks and changes in circumstances that are described in our reports
that are filed from time to time with the Securities and Exchange Commission.
Actual results and outcomes often differ from expectations.