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U.S. Energy Corp. Investment Losses

Have you suffered losses investing in U.S. Energy Corporation? If so, The White Law group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

U.S. Energy Corp. is a natural resource exploration and development company with a primary focus on the exploration and development of its oil and gas assets. The Company is headquartered in Denver, Colorado and trades on the NASDAQ Capital Market under the symbol “USEG”.

According to a recent press announcement, U.S. Energy Corp. (NASDAQ:USEG), has entered into definitive securities purchase agreements with certain institutional investors for a registered direct offering of shares of common stock for gross proceeds of approximately $1.5 million.

The offering was priced at $1.50 per share. Additionally, in a concurrent private placement, for each share of common stock purchased, the investors will receive a warrant to purchase one share of common stock of the Company at an exercise price of $2.05 per share, subject to adjustment, for a period of five years from closing. The offering is expected to close on or about December 21, 2016, subject to satisfaction of customary closing conditions. Roth Capital Partners served as sole placement agent for the offering.

According to the prospectus, an investment in U.S. Energy involves a high degree of risk, including the following risk factors:

“-You will experience immediate and substantial dilution in the net tangible book value per share of the common stock you purchase.

 Since the price per share of our Common Stock being offered is substantially higher than the net tangible book value per share of our Common Stock, you will suffer substantial dilution in the net tangible book value of the Common Stock you purchase in this offering. Based on an offering 1,000,000 shares offered at $1.50 per share of Common Stock, if you purchase shares of common stock in this offering, you will suffer immediate and substantial dilution of approximately $0.71 per share in the net tangible book value of the common stock. See the section titled “Dilution” in this prospectus supplement for a more detailed discussion of the dilution you will incur if you purchase Common Stock in this offering.

 -There is no public market for the warrants to purchase shares of our common stock being offered in this offering.

 There is no established public trading market for the warrants being offered in this offering, and we do not expect a market to develop. In addition, we do not intend to apply to list the warrants on any securities exchange or nationally recognized trading system, including Nasdaq Capital Market. Without an active market, the liquidity of the warrants will be limited.

 -There may be future sales of our securities or other dilution of our equity, which may adversely affect the market price of our common stock.

 We are generally not restricted from issuing additional common stock, including any securities that are convertible into or exchangeable for, or that represent the right to receive, common stock. The market price of our common stock could decline as a result of sales of common stock or securities that are convertible into or exchangeable for, or that represent the right to receive, common stock after this offering or the perception that such sales could occur.

 -Our management has significant flexibility in using the net proceeds of this offering.

 We intend generally to use the net proceeds from this offering for working capital and general corporate purposes. Our management will have significant flexibility in applying the net proceeds of this offering. Management’s failure to use these funds effectively would have an adverse effect on the value of our common stock and could make it more difficult and costly to raise funds in the future.

 –Holders of warrants will have no rights as common stockholders until such holders exercise their warrants and acquire our common stock.

Until holders of Warrants acquire shares of our Common Stock upon exercise of the warrants, holders of Warrants will have no rights with respect to the shares of our Common Stock underlying such Warrants. Upon exercise of the Warrants, the holders will be entitled to exercise the rights of a common stockholder only as to matters for which the record date occurs after the exercise date.”

The White Law Group is investigating the liability that brokerage firms may have for recommending high risk oil and gas investments, like U.S. Energy Corp., to their clients.

Brokerage firms that sell oil and gas investments are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

If you suffered losses investing U.S. Energy Corporation or another oil and gas investment and would like to discuss your litigation options, please call The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

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