Prairie Operating Co. (ticker CRKR) has experienced a significant change in the exercise price of its series A common stock purchase warrants held by Bristol Investment Fund. According to the company’s quarterly report, as of March 31, 2023, the investment fund held warrants to acquire 10,000,000 shares of common stock at an exercise price of $0.175. This price has decreased from $0.25 as a result of anti-dilution provisions in response to the repricing of stock options held by directors and employees.
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The quarterly report provides a comprehensive review of Prairie Operating Co.’s financial activities and its relationship with various related parties.
One notable aspect of these relationships is the company’s revisions to the terms of the common stock purchase warrants held by the Bristol Investment Fund and the Barlock Capital Management, LLC. These amendments have led to changes in the exercise price and number of shares issuable upon the exercise of the warrants, significantly impacting the company’s capital structure and shareholders’ potential returns.
The series A common stock purchase warrants held by Bristol Investment Fund underwent multiple amendments between August 3, 2020, and March 31, 2023.
As a result, the exercise price of these warrants decreased from $2.50 to $0.175. These changes were mainly attributed to the repricing of stock options held by the company’s directors and employees, as well as the effect of reducing the conversion price of the Convertible Debentures to $0.175.
Furthermore, the Bristol Investment Fund assigned 20% of its series A common stock purchase warrants shares to Leviston Resources, LLC on September 9, 2022.
This distribution demonstrates a shift in the company’s ownership structure and an increase in the involvement of additional investors.
In addition to the Bristol Investment Fund, Barlock Capital Management, LLC also holds series A common stock purchase warrants in Prairie Operating Co.
As of March 31, 2023, the company held warrants to acquire 4,285,714 shares of common stock at an exercise price of $0.175. Similar to the changes in the Bristol warrants, the Barlock warrants were subject to anti-dilution provisions that led to adjustments in the exercise price and the number of shares issuable.
These decreases in the exercise prices of the common stock purchase warrants demonstrate a significant shift in Prairie Operating Co.’s financial position and strategy.
Lower exercise prices may encourage investors to exercise their warrants earlier, potentially providing the company with additional liquidity and funding for its operations. Additionally, this shift indicates management’s effort to align its interests with those of the company’s shareholders by ensuring their potential returns are adequately protected through anti-dilution provisions.
In conclusion, Prairie Operating Co.’s quarterly report highlights significant changes in the exercise prices of common stock purchase warrants held by the Bristol Investment Fund and Barlock Capital Management, LLC.
These shifts are attributed to anti-dilution provisions and the company’s aim to protect shareholders’ returns. Stakeholders should carefully assess the implications of these changes to determine the potential impact on their investments in Prairie Operating Co.
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