Jones Energy Inc (NYSE:JONE) is offloading more shares into the market as it continues to look or funds to finance its purchase of 18,000 acres of oil and gas properties. The Independent oil and gas company has confirmed the pricing of previously announced underwritten public offerings of 21million shares of Class A shares at $2.77 a share. The company is also offering 1.6 million shares of its 8% Series A Perpetual Convertible preferred stock.
Terms of Offering
Underwriters have 30-days to purchase additional 3,150,000 shares of Class A common stock and 240,000 shares of convertible preferred stock. The offering is opened until August 26 pending satisfaction of customary closing conditions. Initially, Jones Energy had planned to issue 14 million shares of its Class A common stock and 1 million of its Convertible preferred Stock.
Jones Energy expects net proceeds from the offering to total $132.2 million. A portion of the funds is to be used to finance the acquisition of the oil and gas properties in STACK/SCOOP play in southern Canada and Central Oklahoma.
The company has already signed a definitive purchase and sales agreement for the properties in question awaiting the closure of the transaction in September subject to completion of due diligence. The purchase, however, comes at a time of increased uncertainty in the energy sector as oil prices continue to trade at lows of $40 a barrel. A good number of companies in the sector have resorted to cost cuts amidst concerns that it would take longer for prices to rise above the $50 a barrel mark.
Scalable Footprint
CEO and the Company’s founder believes the acquisition offer the company a scalable footprint in one of the most coveted oil and gas plays in the US. The majority of the acreage acquired contains an oil window, which the company believes will drive compelling returns in the end. Multiple target zones should also provide significant stack pay potential going forward.
Early last year, Jones Energy Inc (NYSE:JONE) raised $375 million through the sale of stock and offering of bonds. The February 2015 offering included $50 million in stock offering and $250 million I in bonds.
Iddriven Inc (OTCMKTS:IDDR) Declines After Delay in 2Q2016 Filing
Iddriven Inc (OTCMKTS:IDDR) declined by 0.88%, in the stock market, during the August 19 trading session, after it failed to file its 2Q2016 financial results, within the 5-day extension period. On August 15, IDDR had filed a Form NT 10-Q, asking the SEC for a 5-day extension in its quarterly filing. The filing had cited that the company had been facing some delay in obtaining and compiling the relevant information for its 10-Q. IDDR also stated that the delay could not have been avoided, without making unreasonable efforts or expenditures.
However, Iddriven has been recently inviting tech-savy business managers and other personalities from the industry, to attend a webinar, being conducted by Oxford Computer Group. The webinar is focused on how Iddriven’s identity access management solution, could be used with Microsoft’s identity manager, to offer an optimal security solution to business. The webinar was to be held on August 18, 2016, but the company is yet to update on the event.
