Last Friday’s after-hours session saw Houston American Energy Corp. (NYSE: HUSA) made a significant comeback, closing at $15.69 after rising 6.01%. This recovery came after a sharp intraday drop of more than 15% during regular trading hours.
Despite the session’s volatility, the stock concluded the week with an impressive one-week gain exceeding 100%. The price stabilization appears to follow the company’s recent announcement of a direct equity placement.
Definitive Agreement for Capital Injection
Last week, Houston American Energy said that it has signed a Securities Purchase Agreement (SPA) for a registered direct offering with an institutional investor. The deal calls for the business to issue 223,762 shares of ordinary stock, or pre-funded warrants, at a price of $10.60 a share. The gross proceeds from this offering are estimated at approximately $2.37 million before accounting for placement agent fees and related expenses.
The anticipated $2.1 million in net revenues will be used for basic business needs. Depending on the completion of standard closing requirements, the deal is expected to conclude on or around June 20, 2025.
SEC Filing and Offering Details
The shelf registration statement on Form S-3 used for this direct offering was previously submitted to and authorized by the U.S. Securities and Exchange Commission (SEC) on November 4, 2024. To provide thorough disclosure, the SEC received a final prospectus supplement and the base prospectus detailing the terms of the offering.
Univest Securities to Facilitate Offering
In coordination with the SPA, Houston American Energy formalized a Placement Agency Agreement with Univest Securities, LLC on June 17, 2025. Univest was appointed as the sole placement agent for the offering. A placement fee equivalent to 8.0% of the total proceeds will be paid to Univest Securities.
Furthermore, Houston American Energy committed to paying the agent back up to $10,000 in reasonable travel and out-of-pocket legal fees. Houston American Energy is making a calculated capital move with the offering in an effort to increase its financial flexibility.
