Tellurian Closes Public Offering of Common Stock

Rhea-AI Summary

Tellurian Inc. (TELL) has successfully completed its public offering, closing on 35,000,000 shares at $3.00 each, raising approximately $100.7 million after fees. B. Riley Securities served as the sole bookrunner, with an option for the underwriter to purchase an additional 5,250,000 shares. The proceeds are earmarked for general corporate purposes, including potential acquisitions of upstream assets. This offering was conducted under an effective shelf registration statement with the SEC.

Positive

• Raised approximately $100.7 million from the stock offering.
• Potential acquisitions of upstream assets could enhance growth.

Negative

• Dilution risk for existing shareholders due to the new share issuance.

Tellurian Inc. (Tellurian or the Company) (Nasdaq: TELL) today announced that it has closed its previously announced public offering of 35,000,000 shares of common stock at a public offering price of $3.00 per share. Proceeds from the offering, after deducting underwriting discounts and commissions and estimated fees and expenses, were approximately $100.7 million. B. Riley Securities, Inc. acted as the sole bookrunner for the offering. 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 was made pursuant to an effective shelf registration statement of the Company previously filed with the Securities and Exchange Commission (the “SEC”). The offering was made only by means of a prospectus supplement and the accompanying prospectus. Copies of the 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 use of proceeds from 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 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/20210806005459/en/

FAQ

What is the purpose of Tellurian's recent stock offering?

The proceeds from the offering will be used for general corporate purposes, including potential acquisitions of upstream assets.

How many shares did Tellurian issue in its public offering?

Tellurian issued 35,000,000 shares in its public offering.

What was the public offering price per share for Tellurian?

The public offering price per share was $3.00.

What is the total amount raised from Tellurian's stock offering?

Tellurian raised approximately $100.7 million from the stock offering.

Who acted as the underwriter for Tellurian's stock offering?

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

What is the potential impact of Tellurian's stock offering on existing shareholders?

The stock offering may lead to dilution for existing shareholders due to the increased number of outstanding shares.