Houston American Energy Corp. Completes $4.42 Million Registered Direct Offering

Houston American Energy Corp. (NYSE:HUSA) recently announced the successful closure of a registered direct offering, resulting in significant proceeds for the company. The offering, finalized on January 23, 2025, involved the issuance and sale of 2,600,000 shares of the company’s common stock at a price of $1.70 per share. The total gross proceeds attained from the offering amounted to approximately $4.42 million.

This transaction was facilitated through a securities purchase agreement with specific purchasers, as detailed in the agreement. The capital obtained from the offering, after factoring in fees and expenses, is intended for general corporate purposes, including potential acquisitions, capital expenditures, and working capital needs. While the company currently doesn’t have any fixed plans for acquisitions, the funds may be directed towards businesses that complement Houston American Energy Corp.’s ongoing operations.

The securities purchase agreement included customary provisions such as representations, warranties, and covenants, underscoring the commitment of both the company and participating purchasers. The agreement is further elaborated in the official filing and is incorporated by reference for comprehensive understanding.

In parallel, Houston American Energy Corp. engaged Univest Securities, LLC as the exclusive placement agent for the offering. The placement agency agreement specified the agent’s entitlement to a fee equating to 8% of the received proceeds, among other expenses. After accounting for fees and expenses, the net proceeds were estimated to be approximately $3,897,200.

To ensure the legality and compliance of the offering, Norton Rose Fulbright US LLP provided their legal opinion and consent within the current report on Form 8-K. Additionally, on January 22, 2025, a press release was issued by the company, formally announcing the launch of the offering.

It’s essential to note that this communication includes forward-looking statements regarding the company’s future operations and performance. While based on current expectations and beliefs, these forward-looking statements are subjected to risks and uncertainties that could lead to actual results differing from those anticipated.

For further details, interested parties can access the full exhibits and documents related to the offering on the Securities Exchange Commission’s website. The company’s commitment to transparency and compliance is evident in its disclosures and regulatory filings.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Houston American Energy’s 8K filing here.

About Houston American Energy

Houston American Energy Corp., an independent oil and gas company, engages in the acquisition, exploration, exploitation, development, and production of natural gas, crude oil, and condensate. Its principal properties are located primarily in the Texas Permian Basin, the South American country of Colombia, and the onshore Louisiana Gulf Coast region.