Tellurian Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Tellurian announced a public offering of 35,000,000 shares of common stock, priced to generate gross proceeds of $105 million before expenses. An underwriter has a 30-day option for an additional 5,250,000 shares. The net proceeds will be allocated for general corporate purposes, including potential acquisitions of upstream assets. The offering is expected to close around August 6, 2021. B. Riley Securities is the sole bookrunner for the offering, conducted under an effective shelf registration statement filed with the SEC.

Positive

• Company raises $105 million through public offering.
• Potential for acquisition of upstream assets using proceeds.

Negative

• Shareholder dilution risk associated with the new share issuance.

Tellurian Inc. (Tellurian or the Company) (Nasdaq: TELL) today announced that it has priced a public offering of 35,000,000 shares of its common stock for total gross proceeds to Tellurian (before underwriter’s compensation and estimated expenses) of $105 million. The Company has granted the underwriter of the offering a 30-day option to purchase up to 5,250,000 additional shares of common stock of the Company to cover over-allotments, if any. The Company intends to use the net proceeds from this offering for general corporate purposes, including the potential acquisition of upstream assets. The offering is expected to close on or about August 6, 2021, subject to satisfaction of customary closing conditions.

B. Riley Securities, Inc. is acting as the sole bookrunner for the offering.

The offering is being made pursuant to an effective shelf registration statement of the Company previously filed with the Securities and Exchange Commission (the “SEC”). The offering may be made only by means of a prospectus supplement and the accompanying prospectus. Copies of the preliminary prospectus supplement for the offering and the accompanying prospectus may be obtained by sending a request to B. Riley Securities, Inc., Attention: Prospectus Department, 1300 North 17th Street, Suite 1300, Arlington, Virginia 22209; Telephone: (703) 312-9580, or by emailing prospectuses@brileyfin.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Tellurian Inc.

Tellurian is developing a portfolio of natural gas production, LNG marketing and trading, and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol “TELL.”

CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS

Statements in this press release related to the Company’s public offering of common stock and all other statements other than statements of historical fact are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from the forward-looking statements. Tellurian urges you to carefully review and consider the cautionary statements made in this press release, the registration statement, the “Risk Factors” section of the preliminary prospectus supplement for the offering and of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and other filings with the SEC for further information on risks and uncertainties that could affect the Company’s business, financial condition and results of operations. The Company cautions you not to place undue reliance on forward-looking statements, which speak only as of the date made. Tellurian undertakes no obligation to update any forward-looking statements in order to reflect any event or circumstance occurring after the date of this press release or currently unknown facts or conditions or the occurrence of unanticipated events. All forward-looking statements are qualified in their entirety by this cautionary statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210804005533/en/

FAQ

What is the purpose of Tellurian's public offering dated August 2021?

The offering aims to raise funds for general corporate purposes, including potential acquisitions of upstream assets.

How much does Tellurian expect to raise from the offering?

Tellurian expects to raise $105 million from the public offering.

What is the significance of the 30-day option for additional shares in the offering?

The underwriter has a 30-day option to purchase up to 5,250,000 additional shares, which can help meet demand and stabilize the offering.

When is the closing date for Tellurian's public offering?

The offering is expected to close on or about August 6, 2021.

Who is managing Tellurian's public offering?

B. Riley Securities is acting as the sole bookrunner for the offering.