RAM Energy Resources Prices 7.5-Million Share Offering at $4 Each, Shares Tumbleadmin
RAM Energy Resources Inc., which explores, develops and manages oil and gas properties, said Thursday it priced its public offering of 7.5 million shares for a below-market price of $4 apiece.
The selling price represents a discount of 12.5 percent to the stock’s closing price Wednesday of $4.57 on the Nasdaq.
Shares of RAM Energy fell on the news, tumbling 28 cents, or 6 percent, to $4.29 in morning trading, after hitting a new 12-month low of $4.21 earlier in the session. The stock had ranged between $4.32 and $7 over the past 52 weeks.
The company expects proceeds of about $28.1 million from the offering. It will use the money as working capital for general corporate purposes, including acquisition, development, exploitation and exploration of oil and natural gas properties, and to repay of debt.
Danish Knights LP, a principal stockholder of RAM Energy Resources, granted the underwriters a 30-day option to buy about 1.1 million shares to cover over-allotments.
RAM Energy Resources had 33.4 million shares outstanding as of Feb. 5.
RBC Capital Markets acted as underwriter of the offering. Jefferies & Co., Johnson Rice & Co. L.L.C., Sanders Morris Harris, Ferris, Baker Watts Inc., and Gilford Securities Inc. served as co-managers.
Source: AP via biz.yahoo.com