Replies to post #5 on Ring Energy Inc (REI)

[Timothy Smith]

$REI - Ring engages offering success to fund growth

Texas and Kansas-focused Ring Energy announced, priced and closed a 5.75 million share public equity sale priced at $10.00/share and netting $54.3 million for the company.

The sale included full exercise of a 750,000 share option. Ring said proceeds would fund drilling and development, new leaseholds and other acquisitions in and around existing holdings and credit facility debt reduction.
The offer dilutes outstanding equity by a hefty 32%.

The shares were priced about 23% below their recent $13/share trading levels, which were in turn themselves down from over $15/share in September.

The market reacted positively to the news, with shares only dropping to $11 and quickly recovering to as much as $12/share. The company recently entered a multimillion drilling and development deal with Torchlight in the Kansas Mississippian but reported operating cash flow of only $1.7 million in Q3, so the funding appears timely.

SunTrust led Ring’s offering, with support from Capital One, Global Hunter, Euro Pacific, Iberia Capital Partners, Noble Financial, Northland Capital Markets and Roth Capital Partners.

[Timothy Smith]

$REI value proposition and track record here is strong.