HighPeak Energy, Inc. (HPK): announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

13 May 2020business combination● NeutralMajor

Amendment No. 2 restates the deal under a new Business Combination Agreement dated May 4, 2020. The Grenadier contribution agreement no longer appears among the proposals in the text provided, which changes the earlier structure (this is read from the proposals listed, not a stated termination). Sponsor deposits into the trust have reached $8,516,396, with a further $200,000 a month planned from May 21 to August 21, 2020, and the redemption price would be about $10.52 per share. The planned listing moves from the NYSE to Nasdaq as HPK, with no listing for the warrants. A fourth warrant tender offer at $1.00 per public warrant runs to July 31, 2020.

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10 Jan 2020business combination● Neutral

Amendment No. 1 to the merger registration statement keeps the same deal structure, including the Grenadier asset contribution, and adds updated trust-account figures. The Pure sponsor has deposited $3,742,794 as of December 31, 2019 to extend the deadline, and the trust held about $392.0 million, which implies a redemption price of about $10.37 per share. It also mentions a warrant tender offer launched December 4, 2019 and a plan to list on the NYSE as HPK. The deal is still pending and unapproved.

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2 Dec 2019business combination● NeutralMajor

HighPeak Energy, Inc. filed its first registration statement to complete a merger with Pure Acquisition Corp., a listed shell company. Under the November 27, 2019 agreements, each Pure share converts into one HighPeak Energy share, and the HighPeak Energy partnerships (HighPeak I, II and III) contribute their interests in HPK Energy, LP for HighPeak Energy stock. A separate agreement has Grenadier Energy Partners II contribute its assets for cash, shares and warrants. Up to 47,396,000 shares and 30,980,000 warrants are registered, and Pure's public holders can choose to redeem for cash instead.

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