U.S. Energy Corp. Announces Closing of Underwritten Public Offering of Common Stock and Exercise in Full of Over-Allotment Option
U.S. Energy Corp. (NASDAQ: USEG) has successfully closed its previously announced underwritten public offering, selling 4,871,400 shares of common stock at $2.65 per share, including 635,400 shares from the full exercise of the underwriters' over-allotment option. The offering generated total net proceeds of approximately $12.1 million.
The company plans to utilize the net proceeds to fund growth capital for its industrial gas development project, including new industrial gas wells and processing plant and equipment, and to support upcoming operations. Proceeds from the over-allotment option may be used to purchase shares from Sage Road Capital, at the net offering price.
Roth Capital Partners served as the sole book-running manager, with Johnson Rice & Company and D. Boral Capital acting as co-managers for the offering.
U.S. Energy Corp. (NASDAQ: USEG) ha concluso con successo la sua offerta pubblica sottoscritta precedentemente annunciata, vendendo 4.871.400 azioni di capitale comune a 2,65 dollari per azione, inclusi 635.400 azioni frutto dell'esercizio completo dell'opzione di sovrallocazione degli underwriter. L'offerta ha generato proventi netti totali di circa 12,1 milioni di dollari.
La società prevede di utilizzare i proventi netti per finanziare il capitale di crescita per il suo progetto di sviluppo di gas industriale, comprese nuove trivellazioni per il gas industriale e un impianto di lavorazione e attrezzature, e per supportare le operazioni future. I proventi dall'opzione di sovrallocazione potrebbero essere utilizzati per acquistare azioni da Sage Road Capital, al prezzo netto dell'offerta.
Roth Capital Partners ha agito come unico manager dell'operazione, con Johnson Rice & Company e D. Boral Capital che hanno svolto il ruolo di co-manager per l'offerta.
U.S. Energy Corp. (NASDAQ: USEG) ha cerrado con éxito su oferta pública suscrita previamente anunciada, vendiendo 4,871,400 acciones de capital común a $2.65 por acción, incluyendo 635,400 acciones de la plena ejercición de la opción de sobreasignación de los suscriptores. La oferta generó ingresos netos totales de aproximadamente $12.1 millones.
La empresa planea utilizar los ingresos netos para financiar capital de crecimiento para su proyecto de desarrollo de gas industrial, incluyendo nuevos pozos de gas industrial y una planta y equipo de procesamiento, y para apoyar operaciones futuras. Los ingresos de la opción de sobreasignación pueden utilizarse para comprar acciones de Sage Road Capital, al precio neto de la oferta.
Roth Capital Partners actuó como el único administrador de libros, con Johnson Rice & Company y D. Boral Capital actuando como co-administradores de la oferta.
U.S. Energy Corp. (NASDAQ: USEG)는 이전에 발표한 공모를 성공적으로 마감했으며, 주당 2.65달러에 4,871,400주의 보통주를 판매했습니다. 여기에는 주관사들의 초과 배정 옵션의 전체 행사를 통해 발생한 635,400주가 포함됩니다. 이 공모는 총 약 1210만 달러의 순 수익을 창출했습니다.
회사는 순 수익을 산업 가스 개발 프로젝트의 성장 자본에 사용하고, 새로운 산업 가스 우물과 가공 공장 및 장비를 포함하며, 향후 운영을 지원할 계획입니다. 초과 배정 옵션의 수익은 순 공모가로 Sage Road Capital의 주식을 구매하는 데 사용할 수 있습니다.
Roth Capital Partners는 단독 북런닝 매니저로 활동하였으며, Johnson Rice & Company와 D. Boral Capital은 공동 매니저로 이 공모에 참여했습니다.
U.S. Energy Corp. (NASDAQ: USEG) a réussi à clôturer son offre publique souscrite précédemment annoncée, en vendant 4 871 400 actions ordinaires à 2,65 $ par action, y compris 635 400 actions provenant de l'exercice complet de l'option de surallocation des souscripteurs. L'offre a généré des produits nets totaux d'environ 12,1 millions $.
La société prévoit d'utiliser les produits nets pour financer du capital de croissance pour son projet de développement de gaz industriel, y compris de nouveaux puits de gaz industriels et une usine de traitement et d'équipements, et pour soutenir les opérations à venir. Les produits de l'option de surallocation peuvent être utilisés pour acheter des actions de Sage Road Capital, au prix net de l'offre.
Roth Capital Partners a agi en tant que gestionnaire exclusif de l'opération, avec Johnson Rice & Company et D. Boral Capital agissant en tant que co-gestionnaires de l'offre.
U.S. Energy Corp. (NASDAQ: USEG) hat erfolgreich ihr zuvor angekündigtes Angebot von gezeichneten Aktien abgeschlossen und dabei 4.871.400 Stammaktien zu einem Preis von 2,65 USD pro Aktie verkauft, einschließlich 635.400 Aktien aus der vollständigen Ausübung der Überallotierungsoption der Underwriter. Das Angebot erzielte Gesamtnettoerlöse von etwa 12,1 Millionen USD.
Das Unternehmen plant, die Nettoerlöse zur Finanzierung von Wachstumskapital für sein Industriegasentwicklungsprojekt zu verwenden, einschließlich neuer Industriegasbohrlöcher und einer Verarbeitungsanlage sowie Ausrüstung, und um bevorstehende Operationen zu unterstützen. Die Erlöse aus der Überallotierungsoption können verwendet werden, um Aktien von Sage Road Capital zum Nettopreis des Angebots zu kaufen.
Roth Capital Partners fungierte als alleiniger Buchführungsmanager, während Johnson Rice & Company und D. Boral Capital als Co-Manager für das Angebot tätig waren.
- Raised $12.1 million in net proceeds through public offering
- Full exercise of over-allotment option indicates strong demand
- Funds allocated for growth capital in industrial gas development project
- Significant shareholder dilution from issuance of 4,871,400 new shares
- Portion of over-allotment proceeds may be used to purchase shares from related party instead of operations
Insights
This strategic capital raise marks a pivotal moment for U.S. Energy Corp., securing
The full exercise of the over-allotment option is particularly significant as it indicates strong demand from institutional investors, suggesting confidence in the company's growth strategy. However, this offering will result in substantial dilution, increasing the outstanding shares by approximately
The capital allocation strategy focuses on two critical areas:
- Industrial gas development project expansion, including new wells and processing infrastructure
- Operational support for upcoming initiatives
A notable aspect of this offering is the potential use of over-allotment proceeds to purchase shares from Sage Road Capital, a related party. This arrangement warrants attention as it could affect the company's ownership structure and governance dynamics.
The timing of this capital raise aligns with the company's stated growth objectives and its commitment to reducing carbon footprint in operational areas. The investment in industrial gas infrastructure could potentially create new revenue streams and enhance operational efficiency, though execution risks remain.
The involvement of reputable underwriters like Roth Capital Partners, Johnson Rice & Company and D. Boral Capital adds credibility to the offering and suggests thorough due diligence of the company's growth plans.
HOUSTON, Jan. 23, 2025 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (NASDAQ: USEG, “U.S. Energy” or the “Company”) announced today the closing of its previously announced underwritten public offering of 4,871,400 shares of its common stock, which includes 635,400 shares sold pursuant to the exercise in full by the underwriters of their over-allotment option, par value
U.S. Energy plans to use the net proceeds of the offering to fund growth capital for its industrial gas development project, including new industrial gas wells and processing plant and equipment, and to support upcoming operations. The proceeds received by the Company from the exercise of the over-allotment option may be utilized to purchase shares of common stock from Sage Road Capital, LLC, a related party, or its affiliates at a price equal to the net offering price received by the Company.
Roth Capital Partners acted as sole book-running manager for the offering. Johnson Rice & Company and D. Boral Capital acted as co-managers for the offering. The Loev Law Firm, PC represented the Company and K&L Gates LLP represented the underwriters in the offering.
The offering is being made pursuant to a shelf registration statement on Form S-3, including a base prospectus, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) and became effective on September 15, 2022. The prospectus supplement and accompanying base prospectus relating to the offering are available on the SEC’s website at www.sec.gov. Copies of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained by sending a request to: Roth Capital Partners, LLC, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660, (800) 678-9147, email at rothecm@roth.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares of common stock or any other securities, nor shall there be any sale of such shares of common stock or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
ABOUT U.S. ENERGY CORP.
We are a growth company focused on consolidating high-quality assets in the United States with the potential to optimize production and generate free cash flow through low-risk development while maintaining an attractive shareholder returns program. We are committed to being a leader in reducing our carbon footprint in the areas in which we operate. More information about U.S. Energy Corp. can be found at www.usnrg.com.
INVESTOR RELATIONS CONTACT
Mason McGuire
IR@usnrg.com
(303) 993-3200
www.usnrg.com
FORWARD-LOOKING STATEMENTS
Certain of the matters discussed in this communication which are not statements of historical fact constitute forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements.
Important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation: (1) the expected use of proceeds, including, but not limited to the repurchase of certain shares of common stock; (2) the ability of the Company to grow and manage growth profitably and retain its key employees; (3) risks associated with the integration of recently acquired assets; (4) the Company’s ability to comply with the terms of its senior credit facilities; (5) the ability of the Company to retain and hire key personnel; (6) the business, economic and political conditions in the markets in which the Company operates; (7) the volatility of oil and natural gas prices; (8) the Company’s success in discovering, estimating, developing and replacing oil, natural gas and helium reserves; (9) risks of the Company’s operations not being profitable or generating sufficient cash flow to meet its obligations; (10) risks relating to the future price of oil, natural gas, NGLs and helium; (11) risks related to the status and availability of oil, natural gas and helium gathering, transportation, and storage facilities; (12) risks related to changes in the legal and regulatory environment governing the oil, gas and helium industry, and new or amended environmental legislation and regulatory initiatives; (13) risks relating to crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; (14) technological advancements; (15) changing economic, regulatory and political environments in the markets in which the Company operates; (16) general domestic and international economic, market and political conditions, including the military conflict between Russia and Ukraine and the global response to such conflict; (17) actions of competitors or regulators; (18) the potential disruption or interruption of the Company’s operations due to war, accidents, political events, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the Company’s control; (19) pandemics, governmental responses thereto, economic downturns and possible recessions caused thereby; (20) inflationary risks and recent changes in inflation and interest rates, and the risks of recessions and economic downturns caused thereby or by efforts to reduce inflation; (21) risks related to military conflicts in oil producing countries; (22) changes in economic conditions; limitations in the availability of, and costs of, supplies, materials, contractors and services that may delay the drilling or completion of wells or make such wells more expensive; (23) the amount and timing of future development costs; (24) the availability and demand for alternative energy sources; (25) regulatory changes, including those related to carbon dioxide and greenhouse gas emissions; (26) uncertainties inherent in estimating quantities of oil, natural gas and helium reserves and projecting future rates of production and timing of development activities; (27) risks relating to the lack of capital available on acceptable terms to finance the Company’s continued growth, potential future sales of debt or equity and dilution caused thereby; (28) the review and evaluation of potential strategic transactions and their impact on stockholder value and the process by which the Company engages in evaluation of strategic transactions; and (29) other risk factors included from time to time in documents U.S. Energy files with the Securities and Exchange Commission, including, but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in the Company’s publicly filed reports, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and future annual reports and quarterly reports. These reports and filings are available at www.sec.gov. Unknown or unpredictable factors also could have material adverse effects on the Company’s future results.
FAQ
How much did U.S. Energy Corp. (USEG) raise in its January 2025 public offering?
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