Dakota Energy has raised $6.7 million in a Series B round led by Sequoia Capital, which has invested in several Dakota Energy stock offerings.
The round, led by investors including Sequoias’ Sequoiam Capital and others including Sequoyah Capital, aims to support Dakotas wealth management capabilities through its Dakota Energy Wealth Management platform, according to a statement from Sequoies spokesperson.
The new round will be used to fund the company’s expansion, according a statement.
Dakotas Dakota Energy shares closed up $2.16 at $42.79 per share.
The Dakota Energy IPO was expected to be closed in September, but the company has delayed that date due to Dakota’s poor financial health.
It is currently listed on Nasdaq’s stock exchange.
The company has a backlog of over $5 billion in debt, and its net debt as of July 31 was $631 million, according the SEC’s filing.
The funding will help Dakotans expand its wealth management capability, which is designed to help owners of Dakota’s energy assets and other assets, such as real estate and other financial assets, manage their money better.
Dalton Lewis, chief executive officer of Dakota Energy, has said Dakota has a number of plans for its financial health, including restructuring the company and selling assets.
Dyce Energy has more than 50 employees, including 50 full-time and part-time employees, and is a subsidiary of Dakota, according its SEC filing.
Dale Energy also operates an array of energy assets including oil and gas production facilities and a pipeline.