Houston American Energy Corp. Secures $100 Million Equity Line of Credit to Fuel Growth and Support Strategic Acquisitions
Houston American Energy (NYSE American: HUSA) has secured a significant $100 million equity line of credit through a Common Stock Purchase Agreement with an institutional investor. The 24-month agreement allows HUSA to sell shares at its discretion, with a $2 million cap per drawdown at a 4% discount to VWAP.
The Company plans to utilize the proceeds to fund strategic acquisitions, scale operations, and expand its presence in the low-carbon fuels and chemicals sector. The agreement was structured under Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D, with HUSA planning to file a registration statement with the SEC for share resale.
Houston American Energy (NYSE American: HUSA) ha ottenuto una linea di credito azionaria significativa di 100 milioni di dollari tramite un Accordo di Acquisto di Azioni Ordinarie con un investitore istituzionale. L'accordo, della durata di 24 mesi, consente a HUSA di vendere azioni a sua discrezione, con un limite di 2 milioni di dollari per ogni prelievo a uno sconto del 4% rispetto al prezzo medio ponderato per il volume (VWAP).
La Societ脿 intende utilizzare i proventi per finanziare acquisizioni strategiche, espandere le operazioni e aumentare la propria presenza nel settore dei carburanti e prodotti chimici a basso contenuto di carbonio. L'accordo 猫 stato strutturato ai sensi della Sezione 4(a)(2) del Securities Act e della Regola 506(b) del Regolamento D, con HUSA che prevede di depositare una dichiarazione di registrazione presso la SEC per la rivendita delle azioni.
Houston American Energy (NYSE American: HUSA) ha asegurado una l铆nea de cr茅dito de capital significativa de 100 millones de d贸lares mediante un Acuerdo de Compra de Acciones Comunes con un inversor institucional. El acuerdo de 24 meses permite a HUSA vender acciones a su discreci贸n, con un l铆mite de 2 millones de d贸lares por extracci贸n con un descuento del 4% sobre el VWAP.
La Compa帽铆a planea utilizar los fondos para financiar adquisiciones estrat茅gicas, ampliar sus operaciones y aumentar su presencia en el sector de combustibles y productos qu铆micos bajos en carbono. El acuerdo fue estructurado bajo la Secci贸n 4(a)(2) de la Ley de Valores y la Regla 506(b) del Reglamento D, y HUSA planea presentar una declaraci贸n de registro ante la SEC para la reventa de acciones.
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Houston American Energy (NYSE American : HUSA) a obtenu une ligne de cr茅dit en actions importante de 100 millions de dollars gr芒ce 脿 un accord d'achat d'actions ordinaires avec un investisseur institutionnel. Cet accord d'une dur茅e de 24 mois permet 脿 HUSA de vendre des actions 脿 sa discr茅tion, avec un plafond de 2 millions de dollars par tirage 脿 une d茅cote de 4 % par rapport au VWAP.
La soci茅t茅 pr茅voit d'utiliser les fonds pour financer des acquisitions strat茅giques, d茅velopper ses op茅rations et accro卯tre sa pr茅sence dans le secteur des carburants et produits chimiques 脿 faible teneur en carbone. L'accord a 茅t茅 structur茅 conform茅ment 脿 la Section 4(a)(2) du Securities Act et 脿 la R猫gle 506(b) du R猫glement D, HUSA pr茅voyant de d茅poser une d茅claration d'enregistrement aupr猫s de la SEC pour la revente des actions.
Houston American Energy (NYSE American: HUSA) hat eine bedeutende 100-Millionen-Dollar-Aktienkreditlinie durch eine Vereinbarung zum Kauf von Stammaktien mit einem institutionellen Investor gesichert. Die 24-monatige Vereinbarung erlaubt es HUSA, nach eigenem Ermessen Aktien zu verkaufen, mit einer Obergrenze von 2 Millionen Dollar pro Abruf zu einem Abschlag von 4 % auf den volumengewichteten Durchschnittskurs (VWAP).
Das Unternehmen plant, die Erl枚se f眉r strategische Akquisitionen, den Ausbau der Gesch盲ftst盲tigkeit und die Erweiterung seiner Pr盲senz im Bereich kohlenstoffarmer Kraftstoffe und Chemikalien zu verwenden. Die Vereinbarung wurde gem盲脽 Abschnitt 4(a)(2) des Securities Act und Regel 506(b) der Regulation D strukturiert, wobei HUSA plant, eine Registrierungserkl盲rung bei der SEC f眉r den Wiederverkauf der Aktien einzureichen.
- Secured substantial $100 million equity line of credit for growth initiatives
- Flexible 24-month agreement with discretionary drawdown timing
- Strategic focus on expansion in low-carbon fuels and chemicals sector
- Enhanced financial flexibility for strategic acquisitions
- 4% discount on share sales may lead to dilution
- Subject to trading and volume limitations
- Additional share issuance could pressure stock price
Insights
HUSA secured $100M equity line providing significant capital flexibility, though potential dilution may impact existing shareholders.
Houston American Energy has secured a
The pricing mechanism - shares sold at a
This financing approach gives HUSA important strategic optionality to pursue acquisitions and expansion, particularly in the low-carbon fuels and chemicals sector - suggesting a potential shift or diversification from traditional energy operations. The
While providing important financial flexibility, the success of this arrangement ultimately depends on management's ability to deploy capital effectively into value-creating projects. The equity line structure means HUSA avoids immediate dilution and can access capital incrementally as needed, potentially minimizing the impact on existing shareholders if used judiciously.
HOUSTON, TX, July 11, 2025 (GLOBE NEWSWIRE) -- Houston American Energy Corp. (NYSE American: HUSA) (鈥淗USA鈥� or the 鈥淐ompany鈥�) today announced it has secured a Common Stock Purchase Agreement with an institutional investor, establishing an equity line of credit of up to
鈥淭his capital commitment is a significant milestone for Houston American Energy and a validation of our long-term vision,鈥� said Ed Gillespie, CEO of the Company. 鈥淚t provides us with enhanced flexibility to execute our growth strategy and advance our project pipeline.鈥�
Under the terms of the 24-month agreement, HUSA has the right to sell up to
鈥淭his agreement provides us with the financial agility to expand our operations, pursue strategic growth opportunities, and scale our business to meet the evolving needs of the energy sector,鈥� added Gillespie.
The Company will file a registration statement with the U.S. Securities and Exchange Commission (鈥淪EC鈥�) to register the resale of shares. The agreement was structured as a committed equity facility under Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D. Additional details regarding the agreement will be available in a Form 8-K to be filed by the company with the SEC.
About Houston American Energy Corp.
Houston American Energy Corp. (NYSE American: HUSA) is an independent energy company with a growing and diversified portfolio across both conventional and renewable sectors. Historically focused on the exploration and production of oil and natural gas, the Company is actively expanding into high-growth segments of the energy industry. In July 2025, HUSA acquired Abundia Global Impact Group, a technology-driven platform specializing in the conversion of waste plastics into low-carbon fuels and chemical feedstocks. This strategic acquisition reflects HUSA鈥檚 broader commitment to meeting global energy demands through a balanced mix of traditional and alternative energy solutions and positions the Company to capitalize on emerging opportunities in sustainable fuels and energy transition technologies.
This news release contains 鈥渇orward-looking information鈥� and 鈥渇orward-looking statements鈥� (collectively, 鈥渇orward-looking information鈥�) within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking information generally is accompanied by words such as 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渆stimate,鈥� 鈥渃ontinue,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渆xpect,鈥� 鈥渟hould,鈥� 鈥渨ould,鈥� 鈥減lan,鈥� 鈥減redict,鈥� 鈥減otential,鈥� 鈥渟eem,鈥� 鈥渟eek,鈥� 鈥渇uture,鈥� 鈥渙utlook鈥� and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking information is based on management鈥檚 current expectations and beliefs and is subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking information in this news release includes, but is not limited to, statements about the future growth of the Company in the low-carbon fuels and chemicals sector as well as plans for strategic acquisitions and scaling operations. Actual results may differ materially from those indicated by these forward-looking statements as a result of a variety of factors, including, but not limited to: (i) risks and uncertainties impacting the Company鈥檚 business including, risks related to its current liquidity position and the need to obtain additional financing to support ongoing operations, the Company鈥檚 ability to continue as a going concern, the Company鈥檚 ability to maintain the listing of its common stock on NYSE American, the Company鈥檚 ability to predict its rate of growth, the Company鈥檚 ability to hire, retain and motivate employees, the effects of competition on the Company鈥檚 business, including price competition, technological, regulatory and legal developments, developments in the economy and financial markets, risks related to whether the Company is able to sell any shares under the Common Stock Purchase Agreement, the timing of filing a registration statement with respect to the resale of such shares, and (iii) other risks as set forth from time to time in the Company鈥檚 filings with the U.S. Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are beyond the control of the Company.
With respect to the forward-looking information contained in this news release, the Company has made numerous assumptions. While the Company considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause the Company鈥檚 actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks and uncertainties facing the Company鈥檚 business is disclosed in our Annual Report on Form 10-K and other filings with the SEC on聽.
All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
For additional information, view the company鈥檚 website at or contact Houston American Energy Corp. at (713) 222-6966.
FAQ
What is the size of HUSA's new equity line of credit and how will it be used?
What are the key terms of HUSA's equity line agreement?
How long is HUSA's equity line of credit agreement valid?
What sectors is HUSA targeting for expansion with the new funding?
What regulatory requirements apply to HUSA's equity line agreement?
