Exhibit 99.2
FOR IMMEDIATE RELEASE: Contact: Terry Badger
Director of Communications
210.308.1221
tbadger@usfunds.com
U.S. GLOBAL INVESTORS ADJOURNS
RECONVENED SPECIAL SHAREHOLDERS' MEETING
PROXIES RECEIVED FROM SHAREHOLDERS REPRESENT 64.5% OF ELIGIBLE SHARES
AND CONTINUE TO STRONGLY SUPPORT PROPOSED AMENDMENTS
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SAN ANTONIO--January 31, 2007--U.S. Global Investors, Inc. (NASDAQ: GROW)
today announced that it adjourned its reconvened Special Meeting of
Shareholders in order to allow additional time for U.S. Global shareholders to
cast their votes and for the company to continue to solicit votes in favor of
proposed amendments to its Articles of Incorporation that would increase the
number of authorized shares to enable the company to effect a 2-for-1 stock
split, 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. At the Special Meeting reconvened on January
31, 2007, U.S. Global received the requisite vote to adjourn the Special
Meeting until February 21, 2007 at 9:00 a.m. Central time, at 7900 Callaghan
Road, San Antonio, Texas 78229.
Under Texas law, approval of Proposal One and Proposal Two requires the
affirmative vote of the holders 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. As of January 31, proxies had been received from
shareholders representing 64.5 percent of eligible Class A shares. Of that
number, nearly 95 percent are in favor of Proposal One and nearly 89 percent
are in favor of Proposal Two.
In light of the Special Meeting's adjournment, the company's Board of
Directors changed the date for the conditional special dividend. The Board has
now authorized the payment of a conditional special dividend of $0.50 per
share ($0.25 per share post-split) payable on March 29, 2007 to shareholders
of record on March 19, 2007, conditioned upon shareholder approval of the two
amendments described above to the Third Restated and Amended Articles of
Incorporation at the Special Meeting.
The adjournment is designed to provide additional time to allow U.S. Global
shareholders to cast their votes or submit their proxies. The record date for
the Special Meeting remains November 20, 2006. The items of business to be
considered at the reconvened Special Meeting are described in U.S. Global's
proxy statement to shareholders dated November 27, 2006.
Valid proxies submitted by U.S. Global shareholders prior to the January 31,
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 February 21, 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.
In an effort to contact each of the shareholders who have not yet exercised
their right to vote, U.S. Global has retained The Altman Group, 1200 Wall
Street West, 3rd Floor, Lyndhurst, NJ 07071. As the meeting date approaches,
shareholders from whom proxies have not been received may receive a phone call
from The Altman Group encouraging them to vote their shares. Shareholders with
questions regarding the Proxy Statement, as amended, may call The Altman Group
toll-free at (800) 314-9816.
HOW TO VOTE SHARES
U.S. Global shareholders as of the November 20, 2006 record date can do so
even if they have subsequently sold their shares.
By Phone: Call our Proxy Client Service Center toll-free at (800) 314-9816.
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Please refer to your proxy vote card for your Control Number. YOU CAN VOTE
USING THIS METHOD EVEN IF YOU'VE LOST OR DISCARDED YOUR PROXY CARD.
By Internet: Go to www.proxyvote.com. Please enter the Control Number on your
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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
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envelope enclosed with the proxy.
U.S. GLOBAL STRONGLY ADVISES ALL SHAREHOLDERS OF THE COMPANY TO READ THE PROXY
STATEMENT, AS AMENDED, 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, THE ALTMAN GROUP TOLL-FREE AT (800)314-9816.
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.