Ring Energy slumps on equity raise

Ring Energy

27/10/2020 13:02

** Ring Energy Inc  REI.A  shares down `11% premarket after
co raises equity
    ** Oil and gas producer prices underwritten follow-on and
concurrent registered direct offering for gross raise of $20 mln
 urn:newsml:reuters.com:*:nBw1byqR4a
    ** Both offerings price at $0.70, ~6% premium to stock's
last close
    ** REI plans to use net offering proceeds from follow-on for
working capital and other general corp purposes
    ** Co has ~68 mln shares outstanding, per Refinitiv data,
and ~50 mln shares of free float
    ** Stock fell earlier this month after REI said buyer of its
Delaware Basin asset in Texas requested extension to Oct 29 to
close transaction, and said buyer wired co additional
non-refundable $1 mln as show of good faith  urn:newsml:reuters.com:*:nL4N2H032W
    ** REI's stock has lost 75% of its value YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com))