PostRock Exchanges Common Stock for Warrants
December 23 2013 - 5:00PM
PostRock Energy Corporation (Nasdaq:PSTR) today
announced that on December 13, 2013, it issued 1,123,981 shares of
PostRock common stock to White Deer Energy L.P., White Deer Energy
TE L.P. and White Deer Energy FI L.P. ("White Deer") in exchange
for warrants held by White Deer exercisable for 22,241,333 shares
of common stock together with a like number of one one-hundredths
of a share of Series B Voting Preferred Stock which were issued as
a unit with the warrants. The warrants had exercise prices ranging
from $2.80 to $6.39 per share, with a weighted average exercise
price of $3.23 per share. The transaction reduces the outstanding
warrants by approximately 55%. Following the exchange, White Deer
owned 10,958,601 shares of common stock and warrants to purchase
17,704,904 shares of common stock with a weighted average exercise
price of $1.58 per share. White Deer's fully diluted ownership
after the exchange and assuming conversion of all other derivative
securities outstanding is reduced from 69% to 57%, and White Deer's
voting power is reduced from 64% to 51%.
The warrants were valued as of September 30, 2013 by a
third-party appraisal firm. The number of shares issued was
determined by dividing the total value of the warrants by $1.31,
the closing price of the common stock on the NASDAQ Global Market
on the same date. The transaction was reviewed and approved by the
unaffiliated members of the board of directors of PostRock.
Commenting, Terry W. Carter, President and Chief Executive
Officer of the Company, said: "This transaction is a step toward
simplifying PostRock's balance sheet by substantially reducing the
overhang of the warrants held by White Deer."
PostRock Energy Corporation is engaged in the acquisition,
exploration, development and production of oil and natural gas,
primarily in the Cherokee Basin of Kansas and Oklahoma. The Company
owns and operates over 3,000 wells and nearly 2,200 miles of gas
gathering lines in the Basin. It also owns and operates oil
producing properties in central Oklahoma and minor oil and gas
producing properties in the Appalachian Basin.
Forward-Looking Statements
Opinions, forecasts, projections or statements, other than
statements of historical fact, are forward-looking statements that
involve risks and uncertainties. Forward-looking statements in this
announcement are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to be correct. Actual results may
differ materially due to a variety of factors, some of which may
not be foreseen by PostRock. These risks and other risks are
detailed in the Company's filings with the Securities and Exchange
Commission, including risk factors listed in the Company's Annual
Report on Form 10-K and other filings with the SEC. The Company's
filings with the SEC may be found at www.pstr.com or www.sec.gov.
By making these forward-looking statements, the Company undertakes
no obligation to update these statements for revisions or changes
after the date of this release.
CONTACT: David J. Klvac
EVP & Chief Financial Officer
dklvac@pstr.com
(405) 815-4304
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