Houston American Energy Corp. (HUSA) completed a registered direct offering of 2,285,715 shares of common stock at $3.50 per share, generating gross proceeds of approximately $8 million. The offering closed on November 21, 2025, and the company will use the net proceeds to advance its planned plastic‑recycling facility, support working‑capital needs, and repay the balance of a $5.43 million senior secured convertible note.
The equity raise is part of a broader capital‑raising strategy that includes a $100 million equity line of credit and a $4.42 million registered direct offering in January 2025. In addition, HUSA completed a debt restructuring that converted most of its senior obligations into a more stable, long‑term position, providing greater financial flexibility for its strategic initiatives.
HUSA is pivoting from a traditional oil and gas explorer to a technology‑focused waste‑to‑fuels business. The company’s acquisition of Abundia Global Impact Group in July 2025 brought proprietary plastic‑conversion technology and a 25‑acre development hub in Cedar Port Industrial Park, Texas. The new facility is intended to transform waste plastics into low‑carbon fuels and chemicals, positioning HUSA in the growing sustainable aviation fuel and recycled chemical markets.
Despite the capital infusion, HUSA’s financial statements reveal significant headwinds. Q3 2025 preliminary results showed a net loss of $7.0 million and operating expenses of $3.8 million, up $2.7 million from Q2 2025. Management disclosed substantial doubt about the company’s ability to continue as a going concern within one year, citing an accumulated deficit and ongoing net losses.
Investor reaction to the offering was negative, driven primarily by concerns over equity dilution and the company’s fragile financial position. The market’s response underscores the tension between the need for capital to fund the transition and the short‑term impact on shareholder value.
CEO Ed Gillespie emphasized that the debt restructuring and equity raise are “pivotal steps toward simplifying our capital structure and unlocking long‑term value.” He added that the company is “building a new leader in the conversion of waste plastics into low‑carbon fuels” and that the raised capital will accelerate the commercialization of Abundia’s technology.
Chairman Peter Longo highlighted the strategic significance of the acquisition, noting that Abundia’s technology provides a “commercially ready solution” with a backlog of development opportunities. He said the transaction gives HUSA a ready‑made platform and project pipeline as the fuel and chemical industries accelerate adoption of low‑carbon solutions.
The long‑term outlook hinges on the successful construction and operation of the Cedar Port hub and the commercial viability of Abundia’s technology. While the company faces ongoing financial challenges and dilution concerns, the strategic shift to waste‑to‑fuels positions it to benefit from rising demand for sustainable aviation fuel and recycled chemical feedstocks.
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