Did Your Broker Over-Concentrate Your Portfolio in Yuma Energy Inc (YUMA)?

Soreide Law Group has been contacted by investors whose brokers recommended the very volatile oil and gas stock and over-concentrated their portfolios in:
Yuma Energy, Inc., (YUMA)
 (Prior to reverse Merger with Davis Petroleum Acquisition Corp.)
52-wk High $7.58

52-wk Low  $0.02
In October of 2016, Yuma Energy, Inc. (YUMA) and privately held Davis Petroleum Acquisition Corp. jointly announced that Davis and Yuma would merge in an all-stock transaction, with Davis becoming a wholly-owned subsidiary of Yuma. Both Yuma and Davis stockholders approved the transaction at special meetings of their stockholders on October 26th. The combined company will be led by Sam L. Banks, Yuma's President and CEO.

As part of the transaction Yuma reincorporated from California into Delaware, converted each share of its existing Series A Preferred Stock into 35 shares of common stock and implemented a 1-for-20 reverse split of its common stock. Yuma and Davis then completed their merger, under which Yuma issued additional shares of common stock resulting in approximately 61.1% of Yuma's now outstanding common stock being owned by the former Davis stockholders. The merger is being treated as a tax-deferred reorganization under Section 368(a) of the Internal Revenue Code.

Yuma Energy, Inc. is an independent Houston-based exploration and production company focused on acquiring, developing and exploring for conventional and unconventional oil and natural gas resources, primarily in the U.S. Gulf Coast and California. Yuma's operations are currently focused on onshore properties located in central and southern Louisiana, where it is targeting the Austin Chalk, Tuscaloosa, Wilcox, Frio, Marg Tex and Hackberry formations. Its recently acquired company-operated properties in the Davis transaction are conventional fields located onshore in south Louisiana and the upper Texas Gulf Coast, and the newly acquired non-operated properties include Eagle Ford and Eaglebine properties in east Texas. In addition, Yuma has a non-operated position in the Bakken Shale in North Dakota and operated positions in Kern and Santa Barbara Counties in California. Yuma's common stock is traded under the trading symbol "YUMA."
As dozens of oil and gas companies file for bankruptcy due to the plummeting prices of crude oil, Soreide Law Group is hearing from a growing list of investors whose brokers recommended they invest in risky oil and gas stocks for their conservative portfolios. As energy companies file for Chapter 11, the investors are left empty handed at the end of a very long creditor’s line.
If you’ve experienced devastating losses due to your broker’s recommendations and over-concentration in Yuma Energy, Inc., (YUMA) or any other energy-related stock, call Soreide Law Group for a free consultation with a lawyer regarding the possibility of recovering your losses at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA and we operate on a contingency basis.