Prairie Operating Co. Repurchases 13,727 Series F Preferred Shares for $19M Cash, Issues Warrants for 4M Common Shares
Prairie Operating Co. has entered into a letter agreement with Hudson Bay PH XIX LLC ("High Trail") to repurchase 13,727 shares of its Series F Convertible Preferred Stock for approximately $19 million in cash. This strategic move aims to optimize the company's capital structure by reducing its preferred stock obligations. In conjunction with the repurchase, Prairie Operating also issued a warrant to High Trail to purchase 4 million shares of common stock at a nominal exercise price of $0.01 per share, with a potential additional warrant for 3 million shares under certain conditions. While the repurchase reduces future dividend liabilities and potential conversion dilution from the preferred stock, the significant cash outlay and the issuance of highly dilutive warrants at a low exercise price represent a notable cost to existing common shareholders.
Key Highlights
- Prairie Operating Co. repurchased 13,727 shares of its Series F Convertible Preferred Stock from High Trail.
- The repurchase price totaled $18,999,047.64, payable in cash.
- Accrued but unpaid dividends on the repurchased preferred shares will be paid in common stock.
- The company issued a warrant (First Penny Warrant) to High Trail to purchase 4,000,000 shares of Common Stock at an exercise price of $0.01 per share.
- A contingent warrant for an additional 3,000,000 shares of Common Stock at a $0.01 exercise price will be issued if Anniversary Warrants are not issued by July 8, 2026.