New Era Energy tumbles on $64 million PIPE financing
NUAI•New Era Energy & Digital shares fell 16.8% before the bell after it announced a $64 million private placement. The company plans to sell about 23.3 million shares at $2.75 each, a 17.4% discount to the prior close.
1. Financing details
New Era Energy & Digital said it will sell about 23.3 million shares in a private investment in public equity for $64 million. It intends to use net proceeds to repay recent borrowings under its Macquarie facility, for working capital and for general purposes. Northland Capital Markets is the sole placement agent.
2. Recent share moves
The stock surged about 31% on Sept. 21 after the company signed a power purchase deal with Luminant, an affiliate of Vistra. Through Wednesday, shares had fallen 50% in October, leaving them up about 14% year to date. All four analysts covering the stock rate it “buy,” with a median price target of $11, per LSEG data.
