Koil Energy Solutions, Inc. (OTCQB: KLNG) entered into a securities purchase agreement on October 27, 2026, to raise approximately $5.6 million through a private investment in public equity (PIPE). The transaction closed on October 29, 2026, with the company issuing 1,330,372 shares of common stock at $2.50 per share. Additionally, the company issued pre-funded warrants for up to 919,628 shares at a price of $2.499 per warrant.
Lucid Capital Markets, LLC served as the sole placement agent for the offering. The company paid the agent a cash fee equal to 6.0% of the gross proceeds, amounting to approximately $336,000, and reimbursed the agent $50,000 for expenses.
In conjunction with the financing announcement, Koil Energy released preliminary, unaudited financial results for the three months ended September 30, 2026. The company reported revenue expected to be between $9.4 million and $10.0 million, representing year-over-year growth of approximately 48% to 57%. Adjusted EBITDA is projected to fall within a range of $0.7 million to $1.2 million.
As of September 30, 2026, prior to the PIPE proceeds, the company held approximately $0.6 million in cash and cash equivalents. The company intends to use the net proceeds from the offering for working capital and general corporate purposes, including investments in rental equipment.
Under the terms of the purchase agreement, the company agreed to file a resale registration statement with the SEC within 30 days of the closing. The company also agreed to refrain from issuing additional common stock or stock equivalents for 90 days following the registration's effectiveness and from engaging in Variable Rate Transactions for 180 days.
