HOUSTON, TEXAS, Jan. 24, 2017 (GLOBE NEWSWIRE) — Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”), today announced that it has entered into definitive agreements with institutional investors to sell, in a private offering, approximately 5,518 shares of automatically convertible preferred stock, each share of which will be convertible into 10,000 shares of its common stock, for anticipated gross proceeds of approximately $400 million, or $7.25 per common share. The private placement is contingent and will close upon the Company’s acquisition of assets in the Southern Delaware Basin, expected to occur in early March 2017. The Company intends to use the proceeds to fund a portion of the acquisition purchase price and for general corporate purposes.
The preferred stock will automatically convert into common stock on the 20th calendar day following the mailing of a definitive information statement to the Company’s stockholders notifying them that holders of a majority of the Company’s outstanding common shares have consented to the issuance of common stock upon conversion of the preferred stock. The Company has already received written consent from holders of greater than 50% of its common shares outstanding agreeing to this issuance of common stock to new investors upon conversion. No dividend will be paid on the preferred stock if it converts into common stock on or before June 1, 2017.
The Company has agreed to file a registration statement with the Securities and Exchange Commission and to use reasonable efforts to cause the registration statement to be declared effective by the SEC.
The securities offered by the Company in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States absent such registration or an applicable exemption from registration requirements.
This press release is being issued pursuant to Rule 135c under the Securities Act. This press release is neither an offer to sell nor a solicitation of an offer to buy any of the securities to be issued in the private placement.
About Halcón Resources
Halcón Resources Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
For more information contact Quentin Hicks, Senior Vice President of Finance & Investor Relations, at 832-538-0557 or [email protected]