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NEW YORK (AP) -- Shares of FX Energy Inc. plunged Thursday morning after it announced its plan for a public offering of 6 million shares priced at $7 per share, an 11.3 percent discount from Wednesday's closing price.
The Salt Lake City company said late Wednesday it expects to give underwriters the option to buy up to 900,000 shares to cover any over-allotments.
FX intends to use the net proceeds to fund a portion of its capital budget for this year and next, as well as to accelerate planned exploration and development.
It expects the net proceeds from the offering will be approximately $39.3 million after expenses of the offering and $45.3 million if the underwriter exercises its full over-allotment option.
FX Energy is an independent oil and gas exploration and production company with production in the United States and Poland.
Shares fell 76 cents, or 9.6 percent, to $7.13 in morning trading Thursday. It had closed at $7.89 a share on Wednesday before the announcement of the offering.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
