HOUSTON, May 3, 2012 /PRNewswire/ -- Houston American
Energy Corp (NYSE Amex: HUSA, the "Company") announced today that
it has entered into definitive agreements with certain
institutional investors to sell 6,200,000 units, with each unit
consisting of one of the Company's common shares and one warrant to
purchase one common share, for gross proceeds of approximately
$13.14 million, before deducting
placement agent fees and estimated offering expenses, in a
"registered direct" offering. The investors have agreed to
purchase the units at a purchase price of $2.12 per unit. The warrants, which represent the
right to acquire an aggregate of up to 6,200,000 common shares,
will be exercisable at any time on or after November 9, 2012 and prior to November 9, 2015 at an exercise price of
$2.68 per share, which was 120% of
the closing price of the Company's common shares on the NYSE Amex
on May 2, 2012. Canaccord
Genuity Inc. acted as lead placement agent for the offering, and
Pareto Securities AS acted as joint-lead agent for the
offering.
The transaction is expected to close on May 8, 2012, subject to customary closing
conditions. Houston American Energy Corp intends to use the
proceeds from the offering for general working capital purposes,
including funding the Company's share of costs of development of
properties in which the Company holds interests.
A shelf registration statement relating to these securities
previously was filed and declared effective by the Securities and
Exchange Commission. A prospectus supplement related to the
offering will be filed with the Securities and Exchange
Commission. This press release does not constitute an offer
to sell or the solicitation of offers to buy any security and shall
not constitute an offer, solicitation, or sale of any security in
any jurisdiction in which such offer, solicitation, or sale would
be unlawful. A copy of the base prospectus and prospectus
supplement (once filed) can be obtained at the Securities and
Exchange Commission's website http://www.sec.gov or via written
request to Houston American Energy Corp. at 801 Travis Street,
Suite 1425, Houston, TX, 77002,
Attention Investor Relations.
About Houston American Energy Corp
Based in Houston, Texas,
Houston American Energy Corp is an independent energy company with
interests in oil and natural gas wells and prospects. The Company's
business strategy includes a property mix of producing and
non-producing assets with a focus on Colombia, Texas and Louisiana. Additional information can be
accessed by reviewing our Form 10-K and other periodic reports
filed with the Securities and Exchange Commission.
For additional information, view the company's website at
www.houstonamericanenergy.com or contact the Houston American
Energy Corp. at (713) 222-6966.
Forward-looking Statements
Disclosures in this press release may contain forward-looking
statements relating to anticipated or expected events, activities,
trends or results. Forward-looking statements, can be
identified by the use of forward looking terminology such as
"believes," "suggests," "expects," "may," "goal," "estimates,"
"should," "likelihood," "plans," "targets," "intends," "could," or
"anticipates," or the negative thereof, or other variations
thereon, or comparable terminology, or by discussions of strategy
or objectives. Because forward-looking statements relate to matters
that have not yet occurred, these statements are inherently subject
to risks and uncertainties. Such statements are made to provide the
public with management's current assessment of the Company's
business, and it should not be assumed that actual results will
prove these statements to be correct. Security holders are
cautioned that such forward-looking statements involve risks and
uncertainties. The forward-looking statements contained in this
press release speak only as of the date of this press release, and
the Company expressly disclaims any obligation or undertaking to
report any updates or revisions to any such statement to reflect
any change in the Company's expectations or any change in events,
conditions or circumstances on which any such statement is based.
Certain factors may cause results to differ materially from those
anticipated by some of the statements made in this release. Please
carefully review our filings with the SEC as we have identified
many risk factors that impact our business plan.
SOURCE Houston American Energy Corp