Black Ridge Oil & Gas, Inc. (ticker: ANFC) completed its offering of subscription rights to shareholders, raising $5.182 million in connection with the previously announced Rights Offering and Backstop Agreement.
Black Ridge said it will use the net proceeds of the Rights Offering for the sponsorship of a special purpose acquisition company (SPAC) focused on effecting a merger or similar business combination with a target business in the energy industry.
Any proceeds from the offering that remain following the SPAC sponsorship will be used for general corporate purposes which may include other investments and acquisitions.
The Company previously filed a Registration Statement on Form S-1 with the Securities and Exchange Commission to register the 431,819,910 shares of common stock to be offered in the rights offering that was declared effective by the SEC on August 3, 2017.
The offering expired at 5:00 p.m., Central Time, September 8, 2017.
Associated with the rights offering Black Ridge also entered into a Backstop Agreement) with a consortium of investors, including members of the company’s board of directors and its CEO who agree to purchase up to $2.9 million of the unsubscribed shares following the completion of the rights offering.
Under the rights offering the company’s current shareholders exercised rights to purchase 199,811,421 shares of stock for a total of $2.398 million. Under the Backstop Agreement, the Backstop Purchasers purchased 232,008,489 shares of stock for a total of $2.784 million. Combined, Black Ridge realized total gross proceeds of approximately $5.182 million, reaching its expected goal, the company said in a press release.
