HNRC SPONSORED SPAC FILES FOR $120 MILLION BUSINESS COMBINATION
HOUSTON, Jan. 5, 2023 /PRNewswire/ -- Houston Natural Resources Corp. (OTC: HNRC) (“HNRC or the Company”) has previously announced that its subsidiary Houston Natural Resources, Inc, through its majority owned HNRAC Sponsors, LLC, sponsored a Special Purpose Acquisition Corp (“SPAC”), HNR Acquisition Corp (“HNRA”). HNRA has entered into a membership purchase agreement with Pogo Resources and two affiliates (“Pogo”) for a purchase price of $120 million dollars. Dallas-based Pogo acquires, develops, and exploits oil and gas assets in Texas’ Permian Basin.
HNRA has an estimated $86 million in its current trust and the transaction is expected to provide $100 million in cash proceeds to Pogo, including a $15 million promissory note. The sellers are also to receive 2,000,000 common HNRA shares, and 500,000 shares are to be placed in escrow for HNRA’s benefit. Aside from these shares, HNRA is to receive a 100% interest in Pogo Resources on the first day of the calendar month that is four months prior to the deal’s close.
In October, HNRA entered into a common stock purchase agreement with White Lion Capital, under which White Lion Capital could be directed to purchase up to $150 million in newly issued shares of the combined company between close and December 31, 2025.
The 15 oil and gas companies that have completed SPAC deals dating back to 2011 are also trading at a median share price of $7.70 with four of these last closing above $22 (Spacinsider).
Houston Natural Resources Corp. (OTC: HNRC) has previously announced that its strategy will result in an additional dividend to its shareholders, after the lock up period has expired, on its SPAC investments. This would provide a potential additional dividend for Houston Natural Resources Corp.’s (OTC: HNRC) shareholders in 2023. Houston Natural Resources Corp. (OTC: HNRC) intends to continue to pursue its long-term strategy of acquiring energy assets and providing additional dividends to shareholders in 2023 and currently has a net asset value (NAV) $1.15 per share in appraised energy assets.
About Houston Natural Resources Corp
Houston Natural Resources Corp ( www.hnrcholdings.com ) (OTC: HNRC). The company is a diversified holding company with business operations and investments. The portfolio companies include investments in energy, information technology and healthcare.
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties.
View original content: https://www.prnewswire.com/news-releases/hnrc-sponsored-spac-files-for-120-million-business-combination-301714581.html
SOURCE Houston Natural Resources Corp