EnerJex greenshoe lifts 10% perpetual preferreds deal to $15.2 million

By Susanna Moon

Chicago, June 20 – EnerJex Resources Inc. said underwriters fully exercised the $1,979,990 over-allotment option on its non-dilutive 10% series A cumulative redeemable perpetual preferred stock, bringing the total deal size to $15.2 million.

The company sold a total of 639,157 shares, including 83,368 shares under the greenshoe exercise, at $23.75 per share, according to a press release.

As previously reported, EnerJex priced $13.89 million of preferreds stock at $23.75 per share on June 17. The deal was announced June 3 and was expected to be $10 million.

The securities have a $25.00 liquidation preference.

Northland Capital Markets and Euro Pacific Capital are the joint bookrunning managers.

Dividends are payable monthly. In 2017, the preferreds become redeemable at par plus accrued dividends.

Proceeds will be used to accelerate the development of the company’s oil and gas properties in Kansas and Colorado and for general corporate purposes, which may include the temporary repayment of borrowings under a revolving credit facility.

The preferreds began trading on the New York Stock Exchange June 17 under the symbol "ENRJPR."

EnerJex is a San Antonio-based independent oil and gas exploration and production company.

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