“New Era Helium Reframes Equity Purchase Facility Agreement with Institutional Investor”

Posted by Ed Jones on Feb 22nd, 2025

New Era Helium Inc. (NASDAQ:NEHC), a Nevada-based corporation, has significantly revamped its Equity Purchase Facility Agreement (EPFA) with a major institutional investor. The restructuring was initiated on 21st February 2025, replacing the existing agreement dated 6th December 2024.

Previously, under the terms of the existing EPFA, New Era Helium had issued promissory notes valued at an aggregate principal amount of $10 million to the investor. Additionally, the company reserved the right to issue and sell, at its discretion, an aggregate of $75 million worth of common stock shares to the investor.

In the newly formed Amended and Restated Equity Purchase Facility Agreement (A&R EPFA), crucial specifics of the transaction have been significantly altered. Any remaining amount under the promissory notes requires New Era Helium to notify the investor in advance. The purchase price for such Advance Notice takes into consideration any outstanding debt, accrued interest, and other premiums. In case of default, New Era Helium can only submit an Advance Notice with the prior written consent of the investor.

The pricing per Advance Share in the new agreement is set at 95% of the market price. The company holds the discretion to choose the minimum acceptable price (MAP) during a Regular Purchase Pricing Period. If the MAP is not selected, it will be automatically fixed at Precision Pricing which is 105.3% of the Floor Price.

The Floor Price, as per the A&R EPFA, initially stands at $0.7176 per common share, calculated as 20% of the five-day volume-weighted average price (VWAP) of the common shares on January 15, 2025. There are provisions for downwards adjustments of the Floor Price every six months, commencing on July 15, 2025.

The amendments to the agreement seem directed towards more operational flexibility for NEH and greater investment security for the investor. The exhaustive details of the A&R EPFA have been filed with SEC for public reference.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read New Era Helium’s 8K filing here.