Item 8.01 Other Events.
General Moly, Inc. (the "Company") will be relying on the Securities and
Exchange Commission's Order under Section 36 of the Securities Exchange Act of
1934 Granting Exemptions From Specified Provisions of the Exchange Act and
Certain Rules Thereunder dated March 4, 2020 (Release No. 34-88318) (the
"Order") to delay the filing of its Annual Report on Form 10-K for the year
ended December 31, 2019 (the "Form 10-K") due to circumstances related to the
coronavirus pandemic ("COVID-19").
Beginning the week of March 16, 2020, the Company began encouraging all
employees to work remotely until further notice. During the week of March 23,
2020, city and county governments throughout the Denver, Colorado metropolitan
area, where the Company's corporate offices are located, have enacted
stay-at-home orders for all residents and mandated the closure of non-essential
businesses, and on March 25, 2020, Colorado Governor Jared Polis issued a
statewide stay-at-home order, effective March 26 through April 11. Company
employees affected by these developments include the key personnel responsible
for the preparation of the Company's financial statements. The Company has a
small accounting staff and, in view of these circumstances, has been unable to
timely provide its auditors with financial records necessary to complete their
audit and provide consent. In addition, the Company has engaged a third-party
valuation firm to assist in the assessment of the mandatory redemption features
of its Senior Promissory Notes due 2022 issued in December 2019. Such third
party has faced similar issues regarding accessibility of records and efficiency
of staffing due to COVID-19 related work-from-home restrictions and the
subsequent governmental stay-at-home orders.
As a result, the Company is unable to file a timely and accurate Form 10-K for
its year ended December 31, 2019 by the prescribed date without undue hardship
and expense to the Company. In reliance upon the Order, the Company expects to
file its Form 10-K no later than May 14, 2020 (which is 45 days from the 2019
10-K's original filing deadline of March 30, 2020).
In light of the current COVID-19 pandemic, the Company will be including the
following Risk Factor and Subsequent Events footnote in its Form 10-K:
Past strong demand for molybdenum in China could be affected by future
developments in that country
The Company is highly exposed to the Chinese market. China's demand for
molybdenum could be substantially affected by an economic slowdown in China,
financial or banking market conditions impacting investment (including tariffs
and trade restrictions imposed by the U.S. and/or China and the status of trade
negotiations between the two countries), or an accelerated shift from
infrastructure-led to service-oriented growth. Increased federal regulatory
oversight concerning our relationships with investors in China, as well as
access of Chinese consumers to our products may become more burdensome. In
addition, the current coronavirus ("COVID-19") outbreak, or similar events in
the future, could have an adverse impact on demand. Any or all of these may
adversely affect the Company's ability to obtain financing for construction of
the Mt. Hope Project.
NOTE 13 - SUBSEQUENT EVENTS
Beginning in early 2020, there has been an outbreak of coronavirus (COVID-19),
initially in China and which has spread to other jurisdictions, including
locations where the Company does business. The full extent of the outbreak,
related business and travel restrictions and changes to behavior intended to
reduce its spread are uncertain as of the date of the Report as this continues
to evolve globally. Therefore, the full extent to which coronavirus may impact
the Company's results of operations, liquidity or financial position is
uncertain. Management continues to monitor the impact that the COVID-19 pandemic
is having on the Company and the economies in which the Company operates. The
Company anticipates that its liquidity may be materially impacted by the
coronavirus outbreak.
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