Lilis Energy Receives Non-Binding Cash Take Private Offer From Major Shareholder
January 13 2020 - 6:00AM
Lilis Energy, Inc. (NYSE American: LLEX) (the “Company”), an
exploration and production company operating in the Permian Basin
of West Texas and Southeastern New Mexico, today announced that it
has received a non-binding offer from Värde Partners, Inc., on
behalf of various entities affiliated with Värde Partners
(collectively, “Värde”), proposing to acquire all of the
outstanding shares of common stock of the Company not owned by
Värde in a cash merger transaction for $0.25 per common share.
The Värde offer is subject to obtaining
customary financing, the recommendation of the Company’s special
committee, approval by the Company’s board of directors and Värde's
investment committee and entering into a definitive merger
agreement with the Company. Any proposed merger transaction would
also be subject to requisite approval by the Company’s
shareholders. The offer letter indicated the Värde offer would
expire on February 17, 2020 and may be withdrawn at any time.
The special committee of the board of directors
of the Company, which was formed last November, will evaluate the
recent Värde offer as it continues its process of evaluating the
potential for other strategic alternatives with the assistance of
its financial advisor, Barclays Capital Inc.
Värde holds approximately 23.6 million of the
91.7 million outstanding shares of the Company’s common stock and
all of the outstanding preferred stock of the Company, including
all of its Series E convertible participating preferred stock. The
Series E participating preferred stock currently votes as a single
class with the common stock on an as-converted basis as
approximately 25.7 million converted shares.
The special committee of the board of directors
cautions the Company’s shareholders and others trading in its
securities that it has only received a preliminary offer proposal
that does not constitute a binding commitment and that no decision
has been made with respect to the Company’s response to the offer.
There can be no assurance that a definitive agreement will be
executed or that the transaction contemplated in the offer or any
other transaction will be consummated. The Company does not
anticipate making further public statements about this matter or
the activities of the special committee unless it determines to
enter into a definitive agreement for a transaction or the board of
directors determines that no such transaction will be affected.
About Lilis Energy, Inc.Lilis
Energy, Inc. is a Fort Worth based independent oil and gas
exploration and production company that operates in the Permian’s
Delaware Basin, considered among the leading resource plays in
North America. Lilis’ current total net acreage in the Permian
Basin is approximately 20,000 acres. Lilis Energy's near-term
E&P focus is to grow current reserves and production and pursue
strategic acquisitions in its core areas. For more information,
please visit www.lilisenergy.com.
Contact:Wobbe PloegsmaV.P.
Capital Markets & Investor Relations210-999-5400, ext. 31
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