Flame (NYSE:FLME) disclosed in an 8-K this afternoon that it has secured additional funding for its PIPE in connection to its merger with energy company Sable Offshore, bringing the total commitments to $74.5 million from $71.5 million.
At deal announcement, the parties entered into PIPE subscription agreements with certain investors pursuant to which the investors agreed to purchase 7,150,000 Class B shares at $10.00 per share, resulting in a commitment amount of approximately $71.5 million.
On June 30, the parties agreed to extend the transaction deadline from June 30 to March 1. In connection with the extension, the PIPE agreements were also amended regarding certain investors representing an aggregate commitment amount of $64.5 million. Under these revised agreements, the investors agreed to extend the date by which the parties must complete the financing from July 31 to March 1.
Earlier this week, Flame and Sable Offshore entered into a substantially similar agreement amendment with the remaining PIPE investors, representing an aggregate commitment amount of $10 million.
As a result, all of the Sable PIPE investors, representing aggregate commitments of $74.5 million, have executed subscription agreement amendments. Although this marks a $3 million increment from the original PIPE agreement, Flame is still far from its target, as it initially aimed to reach $300 million before the closing.
Flame inked its $883 million deal with Sable Offshore in November 2022. Sable Offshore is set to purchase the Santa Ynez Unit (SYU) offshore oil field and its associated onshore facilities off the coast of California.