New Era Helium updates equity purchase agreement with institutional investor

Published 10/07/2025, 14:18
New Era Helium updates equity purchase agreement with institutional investor

New Era Helium Inc. (NASDAQ:NEHC), currently valued at $6.95 million in market capitalization, announced Thursday that it has entered into a Third Amended and Restated Equity Purchase Facility Agreement with an institutional investor. The agreement amends and restates the company’s prior equity purchase facility, which was originally established on December 6, 2024, and subsequently amended on February 21, 2025, and May 5, 2025.

Under the terms of the previous agreement, New Era Helium had issued promissory notes totaling $10 million and had the right, at its discretion, to sell up to $75 million in common stock to the investor during a specified commitment period. As of Thursday, the company reported that it has issued and sold a total of 12,788,741 shares for gross proceeds of approximately $8.59 million under the existing facility. InvestingPro data reveals the company faces significant cash burn challenges, with a current ratio of 0.51 indicating potential liquidity concerns.

The new agreement, effective Thursday, introduces several changes. It allows the company to select an Extended Purchase Pricing Period, enabling the investor to effect sales of shares during pre-market trading hours. The agreement also amends the definition of excluded securities and incorporates other administrative adjustments.

New Era Helium’s common stock and warrants are listed on The Nasdaq Stock Market LLC under the symbols NEHC and NEHCW, respectively.

The company identified itself as an emerging growth company in the filing. The information in this article is based on a statement in a press release and the company’s filing with the Securities and Exchange Commission.

In other recent news, New Era Helium Inc. announced the termination of its supply agreement with Matheson Tri-Gas, Inc. The agreement was contingent on New Era Helium’s Pecos Slope Plant beginning operations by July 1, 2025, a condition that was not met, leading Matheson Tri-Gas to end the contract. Additionally, New Era Helium’s joint venture, Texas Critical Data Centers LLC (TCDC), signed a non-binding Letter of Intent with a global cloud services provider to support AI workloads. This LOI includes plans for acquiring land and securing a power purchase agreement for up to 250 megawatts of electricity in Ector County, Texas. The company also announced the appointment of three new board members to fill recent vacancies. These appointments are expected to bolster the company’s growth strategy in the Permian Basin. Meanwhile, TCDC is in discussions with large enterprise customers to anchor its planned AI infrastructure development, although no formal agreements have been finalized. New Era Helium continues to pursue additional land for potential expansion of the data center campus.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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