Houston American Energy Stock Is Sinking Wednesday: Here’s Why – Houston American Energy (AMEX:HUSA)

Houston American Energy Corp HUSA shares are falling Wednesday after the company announced a registered direct offering.

What Happened: Independent oil and gas company Houston American Energy entered into a definitive agreement with an institutional investor for the purchase and sale of 223,762 shares for $10.60 per share in a registered direct offering.

Houston American Energy anticipates gross proceeds of approximately $2.37 million. Net proceeds are expected to be around $2.1 million, which will be used for general corporate purposes.

The company said it expects the transaction to close on or about June 20.

Houston American Energy said in a regulatory filing last month that it had a total cash balance of approximately $5.31 million as of March 31.

Houston American Energy shares are up more than 210% over the past month amid rising tensions in the Middle East as the Israel-Iran conflict drives increased geopolitical uncertainty.

Oil prices often increase when tensions in the Middle East rise given potential disruptions to global oil supply. Crude oil futures were up approximately 10% over the past week at the time of publication.

HUSA Price Action: Houston American Energy shares were down 13.6% at $17.28 at last check on Wednesday, per Benzinga Pro.

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