(MENAFN- Baystreet.ca) PHX Minerals Inc. (NYSE:PHX) rose early Wednesday after adding around 8% on Tuesday. The company, last week, announced a five-million share common stock offering.
The company announced last Friday, it had priced an underwritten public offering of 5,500,000 shares of the Company's common stock at a price to the public of $2.00 per share. The Company was initially offering 5,000,000 shares of common stock.
In addition, the Company granted the underwriters a 30-day option to purchase up to 825,000 additional shares of common stock at the same price per share. The offering is expected to close on or about April 20, subject to customary closing conditions.
The net proceeds to the Company, after deducting the underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $9,940,000 (exclusive of the proceeds from the underwriters' 30-day option to purchase additional shares of common stock). The Company intends to use the net proceeds of the offering to fund a pending acquisition, subject to customary closing conditions, and for general corporate purposes.
Stifel is acting as the book-running manager and Northland Capital Markets and Seaport Global Securities are acting as co-managers for the offering.
PHX is a natural gas and oil mineral company with a strategy to proactively grow its mineral position in its core areas of focus. PHX owns approximately 253,000 net mineral acres principally located in Oklahoma, Texas, North Dakota, New Mexico and Arkansas.
PHX shares gained 20 cents, or 9.1%, to $2.39.
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