Investors appeared to be thrilled by what Timothy Marquez, CEO of Venoco, Inc. (NYSE:VQ) had to say about his funding plans that would allow him to take the company private, as the natural gas firm’s small cap stock jumped higher shortly after.
According to Reuters, Veneco inked a deal with Marquez at the beginning of the year in which he would purchase company debt and shares for $12.50 each – a deal totaling $1.5 billion. Since the agreement, Veneco has extended the deadline two times for Marquez to find the funds for the deal, but it looks as though he may now have the necessary cash.
The current financing package Marquez spoke about included an asset sale by Venoco to Denver Parent Corp, which is expected to generate as much as $240 million to put toward the deal.
According to The Wall Street Journal, Marquez currently holds 50.3 percent stake in the company, which is currently valued at about $770 million.
News of the financing plans sent shares of Venoco up 16.9 percent, or $1.61, to $11.14 as of 11:25 am on Thursday, August 16.