Oil and gas producer Prairie tumbles on stock sales for acquisition

Shares of Prairie Operating Co PROP.O tumble 19% premarket to $4.75, lowest level hit since Oct 2023, after acquisition-related follow-on priced

Houston-based oil and gas producer late Mon announced stock offering of $38.5 mln (~8.6 mln shares) at $4.50, 23.2% discount to last sale

Co plans to use expected net proceeds of ~$35.4 mln, along with estimated net proceeds of ~$140.8 mln from concurrent registered direct convertible preferred stock offering, to finance ~$600 mln purchase of certain Denver-Julesburg (DJ) Basin assets from Bayswater Exploration

Any remaining proceeds to be used for general purposes, including advancing its development and drilling program, debt repayment or potential acquisitions, co said

Citigroup is lead bookrunner for the common stock offering

On Feb 7, co had announced planned $200 mln stock offering to fund the acquisition

With ~26.9 mln shares outstanding, according to most recent 10-k filing, co has ~$158 mln market cap

Through Mon close, PROP shares down 15% YTD. Stock closed at $10.71 a year ago