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HOUSTON - Houston American Energy Corp. (NYSE American: HUSA), an independent oil and gas company with a current market capitalization of $11.13 million, has announced a reverse stock split of its common stock at a ratio of 1-for-10. The announcement comes as the company’s stock has declined 50% over the past six months, according to InvestingPro data. The move is aimed at boosting the per-share market price to meet the New York Stock Exchange American’s initial listing requirements, in connection with its acquisition of Abundia Global Impact Group, LLC (AGIG). InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 61.54 and holds more cash than debt on its balance sheet, though it faces profitability challenges with negative EBITDA of $3.08 million in the last twelve months. (Get access to 8 more exclusive InvestingPro Tips for HUSA)
The reverse stock split was approved by the company’s Board of Directors following authorization from stockholders at a special meeting on April 24, 2025, where a range of 1-for-5 to 1-for-60 was approved. The split is scheduled to take effect after the market closes on June 6, 2025, with trading on a split-adjusted basis commencing at market open on June 9, 2025.
As a result of the reverse stock split, every 10 shares of issued and outstanding common stock will be converted into one share. This action will reduce the number of issued and outstanding shares from approximately 15.7 million to about 1.6 million. Percentage ownership interests for stockholders will remain unchanged, except for adjustments due to rounding for fractional shares, which will be rounded up.
Stockholders holding shares in book-entry form or through a bank, broker, or other nominee will not need to take any action. Those holding physical stock certificates will receive information from the transfer agent, Standard Registrar & Transfer Co., Inc., on their stock ownership post-split. The rights and preferences of the common stock will not be affected by the reverse stock split, and the trading symbol for the company’s common stock will continue to be HUSA.
Further details regarding the reverse stock split are available in the company’s Definitive Proxy Statement filed with the Securities and Exchange Commission on April 11, 2025, which can be accessed at www.sec.gov or the company’s website.
Houston American Energy Corp. focuses on the development, exploration, acquisition, and production of oil and natural gas properties, primarily in the Permian Basin and the Louisiana Gulf Coast region in the United States. Based on InvestingPro Fair Value analysis, the stock appears to be trading near its Fair Value despite recent market challenges, including weak gross profit margins and negative returns on invested capital.
This news article is based on a press release statement from Houston American Energy Corp. and contains no endorsements of claims or forward-looking information. For additional details, investors are directed to the company’s filings with the SEC.
In other recent news, Houston American Energy Corp. has completed the sale of its approximately 18% membership interest in Hupecol Meta LLC to Andes Operating Company LLC. The transaction, finalized on February 25, 2025, involved the sale for a nominal amount of $1.00, with Andes Operating Company assuming all related liabilities. This move follows the company’s Annual Report, which disclosed an impairment charge of $6,392,874 related to the investment in Hupecol Meta. The sale confirms the impairment charge, indicating that the value of the interest was fully impaired. This asset disposition is part of Houston American Energy’s strategy to manage its portfolio and streamline operations. The information about this transaction was detailed in the company’s 8-K filing with the Securities and Exchange Commission.
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