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Houston American Energy Corp. Announces Redemption of Preferred Stock

Houston American Energy Corp. (NYSE American: HUSA) has announced the redemption of all shares of its 12% Series A and Series B Convertible Preferred Stock.

(Moderate)

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Rhea-AI Summary

Houston American Energy Corp. (NYSE American: HUSA) has announced the redemption of all shares of its 12% Series A and Series B Convertible Preferred Stock. The company used $1.97 million from its At-the-Market Sales Issuance Agreement to fund this redemption, which eliminates $230,000 in annual dividend obligations. President John Terwilliger stated that this move positions the company to meet capital requirements while being debt-free, allowing for future growth in reserves and production.

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Positive

  • Elimination of $230,000 in annual dividend obligations improves financial flexibility.
  • Company is now debt-free, enhancing capital structure.

Negative

  • None.
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-3.86% session move Open Argus
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News Market Reaction – HUSA

The recorded move for HUSA in the trading session of this news was -3.86%.

Data tracked by StockTitan Argus. Session date unavailable.

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HOUSTON, March 4, 2021 /PRNewswire/ -- Houston American Energy Corp. (NYSE American: HUSA) today announced the redemption of all outstanding shares of its 12% Series A Convertible Preferred Stock and 12% Series B Convertible Preferred Stock.

The company funded the redemption of its preferred stock using $1.97 million of proceeds from sales of common stock under its At-the-Market Sales Issuance Agreement.

John Terwilliger, President and Chief Financial Officer of Houston American, stated "Proceeds from the sale of shares under our ATM program has positioned us to meet our expected capital requirements for the foreseeable future while also providing adequate capital to redeem our outstanding preferred stock, eliminating approximately $230,000 of annual dividend obligations.  With our now simple debt-free capital structure and cash on hand, we are well positioned to fund our efforts to acquire, drill and develop prospects with a view to growing our reserves and production."

About Houston American Energy Corp.

Based in Houston, Texas, Houston American Energy Corp. is a publicly-traded independent energy company with interests in oil and natural gas wells, minerals and prospects. The Company's business strategy includes a property mix of producing and non-producing assets with a focus on the Permian Basin in Texas, Louisiana and Colombia.

Forward-Looking Statements

The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate, including statements regarding our ability to meet our capital requirements for the foreseeable future and our ability to acquire, drill and develop prospects and grow reserves and production. Our ability to fund the acquisition, drilling and development of prospect and to grow reserves and production is subject to numerous risk factors, including our dependence upon third party operators and suppliers to perform within the planned time frame and within budget, the availability of rigs and services necessary to conduct drilling operations and the actual results of operations, among other risks described in our reports filed with the Securities and Exchange Commission.

For additional information, view the company's website at www.houstonamerican.com or contact Houston American Energy Corp. at (713) 222-6966.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/houston-american-energy-corp-announces-redemption-of-preferred-stock-301240417.html

SOURCE Houston American Energy Corp.

FAQ

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What did Houston American Energy Corp. announce on March 4, 2021?

On March 4, 2021, Houston American Energy Corp. announced the redemption of all outstanding shares of its 12% Series A and Series B Convertible Preferred Stock.

How did Houston American Energy fund the redemption of its preferred stock?

The redemption was funded using $1.97 million from sales of common stock under its At-the-Market Sales Issuance Agreement.

What are the financial impacts of redeeming preferred stock for HUSA?

Redeeming the preferred stock eliminates $230,000 in annual dividend obligations and leaves the company debt-free.

What is Houston American Energy's strategy after redeeming preferred stock?

The company aims to acquire, drill, and develop prospects to grow its reserves and production.

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