Oil and gas E&P Trio Petroleum announced terms to go public Friday. The company is based out of based Danville, California and has operations in Monterey County, California’ The company outlined plans to raise $6 million by offering 1.7 million shares at a price range of $3 to $4. At the midpoint of the proposed range, Trio Petroleum would command a fully diluted market value of $78 million. Trio Petroleum had filed back on September 12, 2022 with the SEC to raise up to $17 million in an initial public offering. Trio Petroleum plans to list on the NYSE American under the symbol TPET.
The company was founded was incorporated on July 19, 2021, under the laws of Delaware to acquire, fund and develop oil exploration and production assets in California. The Company was formed to acquire Trio Petroleum LLC’s (“Trio LLC”) approximate 82.5% working interest (“WI”) in the large, approximately 8,600-acre South Salinas Project (the “South Salinas Project”), and subsequently partner with certain members of Trio LLC’s management team to develop and operate those assets. The company has five employees.
Spartan Capital Securities is the sole book runner on the deal.
The company has no revenue-generating operations to date.
- For the period from July 19, 2021 (inception) through October 31, 2021, they generated no revenues, reported a net loss of $102,064, and cash flow used in operating activities of $258,923.
- For the six months ended April 30, 2022, they generated no revenues, reported a net loss of $2,377,207 and cash flows used in operating activities of $298,666.
- As of April 30, 2022, they had an accumulated deficit of $2,479,271.
There is substantial doubt regarding our ability to continue as a going concern as a result of our accumulated deficit and no source of revenue sufficient to cover our cost of operation as well as our dependence on private equity and financings.
Source: Renaissance Capital, SEC
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