HOUSTON - HNR Acquisition Corp, a Delaware-based company engaged in the crude petroleum and natural gas industry, has amended its existing common stock purchase agreement with White Lion Capital LLC, according to a recent SEC filing. The amendment, which took effect on Monday, introduces significant changes to the terms of equity sales between the two entities.
Under the original agreement dated October 17, 2022, HNR Acquisition Corp had the right to require White Lion to purchase up to $150 million worth of new shares of the company's Class A common stock. The terms were subject to specific conditions outlined in the agreement.
The latest amendment, dated June 17, 2024, modifies the process for what is termed a "Rapid Purchase." Now, the closure of such purchases will occur on the same trading day that the notice is given.
Additionally, the amendment removes the maximum share limit previously set for Rapid Purchases and introduces a new limitation of 100,000 shares per individual request.
The purchase price for Rapid Purchases has also been adjusted to equal the lowest traded price of the common stock in the hour following White Lion's acceptance of the purchase request.
Furthermore, White Lion has agreed to a daily public resale limit of the company's shares, capping it at 7% of the trading volume for any given business day, excluding trades outside regular hours and block trades.
These unregistered sales of equity securities will be issued under exemptions provided by Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D. The company has stated that these securities will not be offered or sold in the U.S. absent registration or an exemption from registration requirements.
The information presented in this article is based on a press release statement. It is important for investors to note that this report does not constitute an offer to sell or a solicitation of an offer to buy the mentioned securities.
InvestingPro Insights
As HNR Acquisition Corp navigates its amended stock purchase agreement with White Lion Capital, investors are closely monitoring the company's financial health and stock performance. InvestingPro data highlights a market capitalization of $17.24 million, reflecting the company's size in the competitive crude petroleum and natural gas industry. Despite a significant return over the last week with a 16.92% increase in price total return, the overall trend for the past year shows a steep decline with a -77.79% price total return, which aligns with the InvestingPro Tip that the stock price has fallen significantly over the last year.
Moreover, the company's financials raise some concerns, as indicated by an adjusted P/E ratio of -7.37 and a negative price/book ratio of -2.33 for the last twelve months as of Q1 2024. These figures may suggest challenges in profitability, corroborated by an InvestingPro Tip stating that analysts do not anticipate the company will be profitable this year. Additionally, the absence of dividends, as per another InvestingPro Tip, might influence investment decisions for those seeking regular income from their stock holdings.
For investors interested in a deeper analysis of HNR Acquisition Corp, there are additional InvestingPro Tips available that can provide further insight into the company's financial position and stock behavior. These tips can be accessed through InvestingPro's platform, and for those looking to subscribe, be sure to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.