Why HighPeak Energy Shares Are Tumbling Wednesday

HighPeak Energy Inc HPK shares are trading lower Wednesday after the company announced the pricing of its public offering. 

What Happened: After the close on Tuesday, HighPeak commenced an underwritten public offering of its common stock. The company said it expects to grant the underwriter a 30-day option to buy up to 1.935 million additional shares at the public offering price, which was announced Wednesday morning at $10.50 per share. 

HighPeak is expected to generate gross proceeds of $135.5 million. The company will use the proceeds for working capital and to enhance its near-term liquidity position. The offering is expected to close on July 21.

HighPeak is an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional oil and natural gas reserves in the Midland Basin in West Texas.

See Also: Nasdaq Futures Rise As Focus Turns To Tesla, Netflix Q2 Prints: Analyst Says Earnings Need Some 'Heavy Lifting' For Sustained Rally

HPK Price Action: HighPeak shares were down 13.7% at $11.11 at the time of writing, according to Benzinga Pro.

Photo: Terry McGraw from Pixabay.