PEDEVCO Corp. has completed a substantial merger with oil-weighted portfolio companies controlled by Juniper Capital Advisors, significantly expanding the company's operations in the Rocky Mountain region. The transaction adds substantial DJ and Powder River Basin assets to PEDEVCO's portfolio while including a concurrent $35 million private placement that strengthens the company's financial position. This strategic move enhances PEDEVCO's scale and operational capacity in key energy-producing regions, positioning the company for sustained growth in competitive energy markets.
The merger structure involves the issuance of 10.65 million Series A Convertible Preferred Shares to Juniper and its affiliates. Upon conversion of these shares, Juniper and its affiliates will own approximately 53 percent of the combined company. This ownership structure positions the newly expanded entity to pursue a consolidation-focused growth strategy across the Rockies region, leveraging the combined expertise and resources of both organizations. The strategic alignment provides the capital necessary to optimize development of newly acquired resources while maintaining operational focus.
Financial restructuring was a critical component of the transaction, with the merger including the refinancing of existing obligations. The combined company is expected to hold approximately $87 million in debt alongside $10 million in cash, providing a solid foundation for operational expansion and strategic development initiatives. Roth Capital Partners served as financial advisor to PEDEVCO throughout the transaction process, bringing specialized expertise to the complex merger arrangement. This financial positioning enables the company to navigate market challenges while pursuing growth opportunities.
The strategic importance of this merger lies in the enhanced operational footprint it provides PEDEVCO in proven energy-producing territories. The addition of DJ and Powder River Basin assets significantly expands the company's presence in regions with established energy production capabilities. This transaction represents a calculated move to position PEDEVCO for sustained growth through strategic consolidation and financial strengthening. The merger aligns with PEDEVCO's established focus on acquiring and developing strategic, high-growth energy projects in the United States, including its existing D-J Basin Asset located in Colorado and Southeastern Wyoming and its San Andres Asset in eastern New Mexico.
This development represents a significant milestone in the energy sector's ongoing consolidation trend, particularly in the Rockies region where operational scale and financial stability have become increasingly important for competitive positioning. The combination of asset expansion, financial restructuring, and strategic ownership alignment positions the merged entity to capitalize on emerging opportunities in the evolving energy landscape. The enhanced operational and financial capabilities provide the foundation for navigating market volatility while pursuing strategic development initiatives across the expanded portfolio.
