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MCF -19.36% 5 million share offering


09:11 AM EDT, 07/22/2016 (MT Newswires) -- Contango Oil & Gas (MCF) priced a public offering of 5 million shares of its common stock for total gross proceeds of $50 million.
Shares of the Houston, Texas-based company lost as much as 20% to $9.93 in pre-bell trading in New York on Friday. The stock had nearly doubled since the beginning of the year to close at $12.50 on Thursday.
The underwriters have an option for 30 days to purchase up to an additional 750,000 shares of common stock.
Proceeds from the offering are expected to be used to fund the purchase of the company's recently announced acquisition of undeveloped Southern Delaware Basin acreage from a third party and drilling costs associated with the initial development thereof.
Pending such use, the company will use the proceeds of the offering to repay amounts outstanding under its revolving credit facility. If the acquisition does not close, the company intends to use the net proceeds for general corporate purposes.
The offering is expected to close on July 27.
Price: 9.93, Change: -2.57, Percent Change: -20.56
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