Ram Energy Resources said on Tuesday that it would now explore into different strategic alternatives in regard to sale possibility of the company. This oil and natural gas company said that the alternatives would include recapitalization or refinancing of the company by bringing the shares up by at least 37%.
Ram said that all the steps that were taken were only to boost up the share values of the company.
Jefferies &co has been hired by the oil and natural gas company as its official advisor.
The current business plans haven’t changed, and the goals related to development and drilling would still continue as discussed at the year beginning, ram said.
Most analysts said that selling of the company would be good move as compared to the other options as the company still had a lot of debts to pay.
Analyst of RBC capital market, Leo Mariani said “The stock has not been fairly valued in the market, so I don't think it would be a terrible idea for them to look at ways of trying to augment value for the shareholders."
According to the Thomson Reuters data, Jefferies, the advisor of Ram energy sources is the top shareholder of the company.
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