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Is It Time To Review Stock News? Yuma Energy (NYSE American:YUMA)

Yuma Energy (NYSE:YUMA) spotted trading -65.48% off 52-week high price. On the other end, the stock has been noted 142.45% away from the low price over the last 52-weeks. The stock changed -1.00% to recent value of $2.97. The stock transacted 155601 shares during most recent day however it has an average volume of 1326.39K shares. The company has 1.58M of outstanding shares and 1.21M shares were floated in the market.  

 On Oct. 2, 2019, Yuma Energy (NYSE:YUMA) declared that it has entered into a Restructuring and Exchange Agreement (the Restructuring Agreement) with Red Mountain Capital Partners LLC and its affiliates (Red Mountain). As previously disclosed, YE Investment LLC, an affiliate of Red Mountain (YE), purchased all of the Company’s outstanding senior secured bank indebtedness and related liabilities under the Company’s credit facility (the Credit Facility), including the Company’s remaining hedge obligations due to its hedge counterparties (Hedge Liabilities). The primary purposes of the Restructuring Agreement are to reform Yuma’s capital structure, address the Company’s liquidity needs, and regain compliance with the NYSE American LLC listing standards.  The Company plans to hold a Special Meeting of Stockholders to vote on matters required to be approved by stockholders in connection with the transactions contemplated by the Restructuring Agreement (the Transactions).

Mr. Anthony C. Schnur, Interim Chief Executive Officer and Chief Restructuring Officer commented, The Restructuring Agreement and the modification of the Credit Facility, will immediately reduce Yuma’s debt-related and hedge liabilities by $34.7 million, and increase Yuma’s shareholder equity by the same amount.  Yuma’s internal review indicates that the Company has sufficient NOLs to offset the associated cancellation of indebtedness income.  In addition, the anticipated conversion of the Series D Preferred Stock into common stock will eliminate a liquidation preference of approximately $23.8 million.  These factors indicate that the Transactions are accretive to the current shareholder equity of the Company and that the restructuring plan as adopted, with dramatically reduced levels of debt, favorably positions Yuma for the future.

 Its earnings per share (EPS) expected to touch remained -61.40% for this year.YUMA has a gross margin of 39.70%. 

 According to the most recent quarter its current ratio was 0.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -16.30% from the mean of 20 days, 20.44% from mean of 50 days SMA and performed 14.29% from mean of 200 days price. Company’s performance for the week was -10.27%, 52.31% for month and YTD performance remained 32.00%.

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