U.S. Energy Corp. said Friday that it priced a public offering of 5 million shares of its common stock at a 6 percent discount to their Thursday closing price.
The company's stock fell 60 cents, or 10.8 percent, to close at $4.98 Friday
The natural resources company will offer the shares for $5.25 each. The company has also granted the deal's underwriters a 30-day option to buy 750,000 additional shares.
U.S. Energy plans to use proceeds from the sale to fund capital requirements for its drilling program with Brigham Exploration Co. and other joint venture partners. The money will also be used for general corporate purposes.