New Era Energy & Digital has agreed to raise about $64 million by selling common stock to private investors. The financing is intended in part to reduce debt, including a $36 million repayment under the company’s term loan with Macquarie Equipment Capital, and is expected to close on October 30, 2026.
The share sale will increase the company’s outstanding common stock by about 19.8% from its pre-financing level, assuming the deal closes as planned.
Key details
- Share sale: New Era will issue 23,272,727 shares at $2.75 each, for gross proceeds of approximately $64 million.
- Dilution: The company had 117,291,542 shares outstanding before the placement. After closing, it expects to have 140,564,269 shares outstanding. The new shares would represent about 16.6% of the post-financing total.
- Use of proceeds: The company plans to use the net proceeds to repay indebtedness, fund working capital and support other general corporate purposes. The debt repayment includes an aggregate $36 million under its existing Macquarie term loan, including the applicable multiple-on-invested-capital premium.
- Placement costs: Northland Capital Markets served as placement agent and will receive 6% of gross proceeds—about $3.84 million—plus expense reimbursements. The company’s net proceeds will therefore be lower than the gross amount.
- Resale registration: New Era has agreed to file a registration statement covering investors’ resale of the shares within 15 business days. It will use commercially reasonable efforts to have the statement become effective within 45 days after filing, or 90 days if it receives a full review, and to keep it effective while the shares remain covered.
- Investor terms: The shares were sold in a private placement to accredited investors.
The financing brings in equity capital while adding a substantial number of shares to the capital base. The planned Macquarie loan repayment will reduce debt, though the amount of net proceeds available for that and other uses will be affected by the loan premium and placement costs.