Pedevco Corp. (PED)

[Carl H Hermansson]

Pedevco Prices Public Offering of Common Stock

Pedevco a publicly-traded energy company engaged in the acquisition and development of strategic, high growth energy projects, including shale oil and gas assets in the United States, announced the pricing of its underwritten public offering of an aggregate of 5,600,000 shares of common stock at the price of $0.50 per share to the public (the "Offering"). The Company expects to receive gross proceeds of $2.8 million, before deducting underwriting discounts and estimated offering expenses, as a result of the Offering. The underwriters have also been granted a 45-day option to purchase up to 840,000 shares of common stock to cover over-allotments, if any.

The net proceeds to the Company from the Offering are expected to be approximately $2.73 million after deduction of underwriting discounts and estimated offering expenses, assuming the underwriters exercise their full over-allotment option. Subject to customary conditions, the Offering is expected to settle and close on May 18, 2015.

The Company expects to use the net proceeds from the Offering to extend and acquire additional leasehold rights in the Denver-Julesburg (D-J) Basin in Colorado, fund working capital, and for general corporate purposes.


I generally dont like public offerings that much but in this case i think its justified. They use the money to buy more leases for future exploration. Once the deal with Dome is signed and closed, this will be an entirely new company generating good profit. I can see this stock trading in the $2 range when the drilling starts to commence later this year. Their current leases are really awesome and the market will realize that in due time :)