09:07 AM EDT, 07/11/2025 (MT Newswires) -- Houston American Energy ( HUSA ) said Friday it entered a common stock purchase agreement with an institutional investor establishing a $100 million equity line of credit to support its growth and acquisitions strategy.

Under the 24-month agreement, the company may sell up to $100 million of its common stock to an institutional investor in tranches of up to $2 million. Shares will be issued at a 4% discount to the volume weighted average price over a specified period, the company said.

Separately, the company also secured $5 million in financing through a convertible note issued to an institutional investor.

The senior secured convertible note carries a face value of about $5.4 million after an 8% original issue discount and bears 7% interest with a maturity date of July 10, 2026, the company said.

The proceeds from the convertible note will fund part of its planned acquisition and development of a 25-acre site at the Cedar Port Industrial Park in Baytown, Texas.

Shares of Houston American Energy ( HUSA ) were up 1.3% in recent premarket activity Friday.