U.S. Energy Raises $12.1M in Stock Offering

U.S. Energy Corp. secures capital through public offering, with plans to allocate funds to recent acquisition and general operations.

January 24, 2025

Stock Sale Generates Capital for Growth

U.S. Energy Corp. has successfully completed an underwritten public offering of 4,871,400 shares of common stock, including an over-allotment exercised by underwriters. The company priced the offering at $2.65 per share, raising approximately $12.1 million in net proceeds. The funds will primarily be used to support development in Montana, working capital needs, and other corporate purposes.

Roth Capital Partners, LLC served as the lead underwriter for the offering. The transaction was conducted under a previously filed shelf registration, ensuring compliance with securities regulations.

Use of Proceeds and Strategic Flexibility

A key aspect of the deal allows U.S. Energy’s management to allocate the proceeds strategically. The company may use the capital to further develop its Montana acquisition or for general business operations. Additionally, the underwriting agreement provides an option for the firm to purchase shares from Sage Road Capital, LLC, a major shareholder affiliated with a board member.

To maintain market stability, directors, executives, and affiliated entities have agreed to a 60-day lock-up period, restricting the sale or transfer of shares without prior approval. This measure aligns with typical market practices for public offerings.

Regulatory Compliance and Legal Oversight

The sale was executed under a Form S-3 registration statement, which was initially filed in 2022 and later approved by the SEC. The company also engaged The Loev Law Firm, PC to validate the issuance and sale of the shares. The transaction follows regulatory norms, ensuring that all disclosures are made transparently to investors.

U.S. Energy’s management reiterated that this offering does not constitute an immediate sales pitch for shares in jurisdictions where regulatory approval is required. Instead, it serves as part of a broader strategy to enhance the company’s operational and financial stability.

Future Outlook

With fresh capital in hand, U.S. Energy is expected to accelerate its expansion efforts in Montana and potentially pursue other opportunities aligned with its business model. The move signals a focus on long-term value creation and reinforces the company’s commitment to sustainable growth.