HNRC SPONSORED SPAC FILES FOR $120 MILLION BUSINESS 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).
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