12 Nov 2021capital raising announcement▲ GoodMajor
On November 10, 2021 PHX agreed to buy about 827 net royalty acres in the Haynesville play (De Soto and Caddo Parishes, Louisiana, and Nacogdoches County, Texas) from Vendera entities for $5.2M: $520,000 cash and $4.68M in stock, or 1,519,481 shares at $3.08. The share count may be cut so the sellers own 4.9% or less of PHX, with cash rising to compensate; closing is expected around December 1, 2021 and the effective date is November 1, 2021. The press release also says PHX closed two other Haynesville purchases in November 2021 of about 219 net royalty acres for $2,331,992 in cash, and describes selling lower-margin legacy non-operated working interests, which fits the ongoing Haynesville expansion.
What it means for a shareholder
1.5m new shares at $3.08 to raise about $4.7m. That's 4.4% dilution: every existing holder's slice gets 4.4% smaller. If you held $1,000 of shares (325 at the issue price), your slice goes from 0.000991% to 0.000947% of the company. To keep it you'd need 15 more shares - about $46 at the issue price.
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