Quest Resource to offer 8.4 million shares, use proceeds to partly fund acquisition
Oil and gas production company Quest Resource Corp. on Tuesday said it began an underwritten public offering of about 8.4 million shares of stock.
Underwriters have a 30-day option to purchase up to about 1.3 million additional shares.
Quest said it will use about $70 million of net proceeds to fund part of its $140 million pending acquisition of PetroEdge Resources LLC.
The remaining part of the net proceeds from the offering, plus proceeds from a $35 million term loan, will be used to pay fees and expenses related to the PetroEdge acquisition and for general corporate purposes, including drilling and development activities.
If the deal is not complete after the offering, proceeds will be used for general corporate purposes.
