Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
As previously disclosed, on May 30, 2019, the United States District Court for
the District of Colorado entered an order (the "Order") appointing C. Randel
Lewis as the custodian of U.S. Energy Corp, a Wyoming corporation (the
"Company"), with the charge to act as Interim Chief Executive Officer and, by
virtue of that charge and the bylaws of the Company, the Chairman of the Board
of Directors of the Company (the "Board"). Pursuant to the Order, among other
things, Mr. Lewis, as custodian, was to ensure that the directors elected at the
2019 annual meeting of shareholders promptly vote on a Chief Executive Officer
to replace Mr. Lewis.
The Company held its annual meeting of shareholders (the "Annual Shareholders'
Meeting") on Tuesday, December 10, 2019. In accordance with the Order, following
the Annual Shareholders' Meeting, the elected Board voted for Ryan Smith as the
new Chief Executive Officer to replace Mr. Lewis. The Board also elected Mr.
Smith to continue to serve as the Company's Chief Financial Officer.
Mr. Smith, age 36, has served as the Company's Chief Financial Officer since May
2017 and consulted for the Company from January 2017 to May 2017. Prior to this
position, Mr. Smith served as the Chief Financial Officer of Emerald Oil Inc.
from September 2014 to January 2017 and its Vice President of Capital Markets
and Strategy from July 2013 to September 2014. Prior to joining Emerald Oil, Mr.
Smith was a Vice President in the Investment Banking Group of Canaccord Genuity
and focused solely on the energy sector. Mr. Smith joined Canaccord Genuity in
2008 and was responsible for the execution of public and private financing
engagements along with mergers and acquisitions advisory services. Prior to
joining Canaccord Genuity, Mr. Smith was an Analyst in the Energy Group of Wells
Fargo, working solely with upstream and midstream oil and gas companies. Mr.
Smith holds a Bachelor of Business Administration degree in Finance from Texas
A&M University.
There is no arrangement or understanding between Mr. Smith and any other person
pursuant to which he was elected as Chief Executive Officer of the Company. Mr.
Smith is not a party to any transaction requiring disclosure pursuant to Item
404(a) of Regulation S-K.
As disclosed in the Company's definitive proxy statement relating to the Annual
Shareholders' Meeting, filed with the U.S. Securities and Exchange Commission on
November 5, 2019 (the "Proxy Statement"), Mr. Lewis, Catherine J. Boggs, J.
Weldon Chitwood and David A. Veltri did not stand for re-election to the Board
at the Annual Shareholders' Meeting and, therefore, are no longer directors of
the Company.
Item 5.07. Submission of Matters to a Vote of Security Holders.
The Company held the Annual Shareholders' Meeting on Tuesday, December 10, 2019,
at 8:00 a.m. Central Time in Houston, Texas. The certified results of the
matters voted upon at the Annual Shareholders' Meeting, which are more fully
described in the Proxy Statement, are as set forth below.
The following nominees for Class Two directors were elected to serve until the
2021 annual meeting of shareholders and until their successors have been duly
elected or appointed and qualified as follows:
Name of Director Votes For Withheld Broker Non-Votes
James W. Denny III 7,380,480 101,785 4,367,905
Patrick E. Duke 7,383,024 99,241 4,367,905
The following nominees for Class One directors were elected to serve until the
2022 annual meeting of shareholders and until their successors have been duly
elected or appointed and qualified as follows:
Name of Director Votes For Withheld Broker Non-Votes
Randall D. Keys 7,381,943 100,322 4,367,905
D. Stephen Slack 7,380,463 101,802 4,367,905
The shareholders voted to ratify the appointment of Plante & Moran PLLC as
independent auditors for the 2019 fiscal year as follows:
Votes For Votes Against Abstain
11,749,967 94,772 5,431
The result of the shareholders' advisory vote on executive compensation
("say-on-pay") was as follows:
Votes For Votes Against Abstain Broker Non-Votes
7,127,517 249,111 105,637 4,367,905
The shareholders voted to approve amendments to the Company's Articles of
Incorporation related to corporate governance and other technical amendments as
follows:
Votes For Votes Against Abstain Broker Non-Votes
7,382,150 92,141 7,974 4,367,905
The shareholders voted to approve an amendment, at the discretion of the Board,
to the Company's Articles of Incorporation to implement a reverse stock split of
the Company's outstanding Common Stock at a reverse split ratio of 1-for-10 as
follows:
Votes For Votes Against Abstain Broker Non-Votes
9,368,663 2,477,943 3,564 -
A copy of the press release announcing the results of the Annual Shareholders'
Meeting is attached hereto as Exhibit 99.1.
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