Yuma Energy Inc. (NYSE American: YUMA) has upsized and priced an underwritten public offering of its common stock, consisting of 9,600,000 shares of common stock at a public offering price of $1.00 per share for aggregate gross proceeds of $9,600,000, before deducting underwriting discounts, commissions and offering expenses. All of the shares are being offered by Yuma.
In addition, Yuma has granted the underwriters a 30-day option to purchase up to an additional 1,440,000 shares of its common stock at the public offering price of $1.00 per share, to cover over-allotments, if any, which if exercised in full would bring the aggregate gross proceeds to $11,040,000, before deducting underwriting discounts, commissions and offering expenses. The offering is expected to close on October 3, 2017, subject to the satisfaction of customary closing conditions.
Yuma intends to use the net proceeds from the offering to expand its horizontal San Andres play located in Yoakum County, Texas. Specifically, these funds will provide for additional leasehold acquisitions in the Permian Basin, the drilling of a San Andres horizontal oil well along with a Devonian salt water disposal well and other field infrastructure, and for general working capital purposes.
Northland Capital Markets and Euro Pacific Capital are acting as joint book-running managers for the offering.