Barnwell Industries, Inc. completed a private placement of approximately 2.2 million shares of its common stock at $1.10 per share, generating about $2.4 million in gross proceeds. The transaction, led by Bradley Radoff, also granted purchasers—excluding most directors and management—warrants to buy one share for every two shares purchased at an exercise price of $1.65. The closing is expected around November 28, 2025.
The financing comes as Barnwell’s quarterly results show a widening net loss of $1.55 million ($0.15 per share) for Q3 2025, up from a $1.02 million loss ($0.10 per share) in the same period a year earlier. Revenue from continuing operations fell to $3.19 million, down from $4.51 million in Q3 2024, reflecting a shift away from the legacy water‑well drilling business and a focus on Canadian exploration and development and Hawaiian land investments. The capital raise is intended to shore up liquidity and fund the company’s strategic pivot toward higher‑margin, resource‑intensive projects.
Management emphasized that the new capital will support the exit of the legacy drilling segment and enable investment in Canadian E&P assets, which have historically delivered higher returns. Executive Vice President of Finance Philip Patman, Jr. said the placement “strengthens our balance sheet and positions us to execute on the next phase of our strategy. With a leaner, more focused platform and the addition of Joshua Schechter to our board, Barnwell believes it will be well equipped to pursue new opportunities that align with our disciplined approach to capital deployment and long‑term value creation.”
Analysts noted that the pre‑market uptick in the stock on the day of the announcement reflected investor approval of the liquidity boost, but the broader context of declining revenue and a widening loss tempered enthusiasm. The market reaction underscored the company’s need to demonstrate operational turnaround and the successful execution of its strategic shift before the financing can translate into improved profitability.
Barnwell’s board changes—adding Joshua Schechter, a former senior executive at a major mining firm—signal a desire for deeper industry expertise as the company refocuses on resource development. The placement also aligns with the company’s recent shareholder dispute resolution, which had previously delayed annual meetings and raised governance concerns. By securing fresh capital and board expertise, Barnwell aims to stabilize its capital structure and restore investor confidence as it navigates a challenging operating environment.
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