What will RIS do with USD 13 million from the sale of half of its pennaco (PN) shares?
Pennaco 3.5-mln-share offering prices at $11.125
FRIDAY, OCTOBER 15, 1999 12:12 PM
- Reuters
NEW YORK, Oct 15 (Reuters) - Pennaco Energy Inc. (AMEX:PN) said Friday it
offered 3.5 million common shares at $11.125 per share, adding it will use its part
of proceeds, $23.5 million, to continue a gas drilling and lease acquisition
program.
Pennaco, which focuses entirely on natural gas in Wyoming and Montana, said it
sold 2.25 million shares, with the company's largest shareholder, RIS Resources
International Corp. (V:RIS), selling 1.25 million shares, or half its stake in
Pennaco.
The Denver-based company said the offering, which it increased to 3.5 million
shares from 3.0 million due to strong demand, will bring the total number of shares
outstanding to 17.8 million. That means RIS Resources's remaining holdings of
1.25 million shares amount to a stake of about 7 percent.
The offering was lead managed by Bear, Stearns & Co. Inc. and co-managed by
A.G. Edwards & Sons, Inc., Howard, Weil, Labouisse, Friedrichs Incorporated and
Hanifen, Imhoff Inc.
In late morning trade on the American Stock Exchange, Pennaco shares were off
1/4 at 10-7/8.
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