HOUSTON, Dec. 2, 2019 /PRNewswire/ -- Yuma Energy,
Inc. (NYSE American: YUMA) ("Yuma" or "Company," "we" or
"our") today announced that the Company and certain of its
subsidiaries have entered into an amended and restated Credit
Agreement ("Credit Agreement") with its lender, YE Investments LLC,
an affiliate of Red Mountain Capital Partners, LLC. ("Red
Mountain"). The Credit Agreement provides for an additional
three-year senior secured delayed-draw term loan of up to
$2.0 million with a maturity date of
September 30, 2022 and was entered
into in conjunction with the Restructuring and Exchange Agreement
dated September 30, 2019, by and
among Yuma, Red Mountain and certain of their affiliates (the
"Restructuring Agreement"). The latest agreement provides capital
availability subject to the terms of the Credit Agreement where
advances are made at the sole discretion of the lender.
Mr. Anthony C. Schnur, Interim
Chief Executive Officer and Chief Restructuring Officer of Yuma
commented, "With the cooperation of Red Mountain, we continue to
drive our restructuring process. Importantly, access to the
funds under the Credit Agreement will allow us to conduct oil and
gas production enhancement operations while our efforts in
restructuring our balance sheet and capital structure
continue."
In addition to the Credit Agreement detailed herein, there are a
number of transactions in connection with the Restructuring
Agreement that are outlined in our press release dated November 14, 2019 and our quarterly report on
Form 10-Q filed on November 14, 2019
with the Securities and Exchange Commission ("SEC"). While the
Company anticipates the completion of the contemplated
transactions, there is no guarantee that some terms and conditions
will not change.
Continuing Uncertainty
The Company's audited
consolidated financial statements for the year ended December 31, 2018, included a going concern
qualification. The risk factors and uncertainties described
in our SEC filings for the year ended December 31, 2018, the quarter ended March 31, 2019, the quarter ended June 30, 2019, and the quarter ended September 30, 2019 raise substantial doubt about
the Company's ability to continue as a going concern.
Please refer to our recently filed Quarterly Report on Form
10-Q for the three months ended September
30, 2019 and all our filings with the SEC for further
information.
About Yuma Energy, Inc.
Yuma Energy, Inc., a
Delaware corporation, is an
independent Houston-based
exploration and production company focused on acquiring, developing
and exploring for conventional and unconventional oil and natural
gas resources. Historically, the Company's activities have
focused on inland and onshore properties, primarily located in
central and southern Louisiana and
southeastern Texas. Its common stock is listed on the
NYSE American under the trading symbol "YUMA."
Forward-Looking Statements
This release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Any and all statements that are not strictly
historical statements constitute forward-looking statements and may
often, but not always, be identified by the use of such words such
as "expects," "believes," "intends," "anticipates," "plans,"
"estimates," "potential," "possible," or "probable" or statements
that certain actions, events or results "may," "will," "should," or
"could" be taken, occur or be achieved. We caution that these
statements by their nature involve risks and uncertainties, and
actual results may differ materially depending on a variety of
important factors, including, among others: the ability to obtain
stockholder approval of the transactions; the ability to consummate
the transactions; the consequences of consummating the
transactions; the ability of the Company to enter into an amended
and restated credit facility; the ability to maintain sufficient
liquidity to fund operations; the ability to remain listed on the
NYSE American; the ability to continue as a going concern; and the
ability to use net operating losses to offset cancellation of
indebtedness income. The Company's annual report on Form 10-K
for the year ended December 31, 2018,
quarterly reports on Form 10-Q. recent current reports on
Form 8-K, and other SEC filings discuss some of the important risk
factors identified that may affect its business, results of
operations, and financial condition. The Company undertakes
no obligation to revise or update publicly any forward-looking
statements, except as required by law.
For more information, please contact
Carol Coale
Managing Director
Dennard Lascar Investor
Relations
713-529-6600
ccoale@dennardlascar.com
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SOURCE Yuma Energy, Inc.