Prairie Operating Co. Repays $13.7M, Reduces Warrant Coverage from 125% to 75%
Prairie Operating Co. agreed to repay $13.7 million in Series F preferred stock value and waived a $3.0 million extension fee to reduce potential dilution. The deal cuts Anniversary Warrant coverage from 77 million to 34 million shares and extends the issuance date by 90 days to July 8, 2026.
1. Agreement Terms
Prairie Operating Co. will immediately repay $13.7 million of the Series F Convertible Preferred Stock’s stated value and has waived the previously announced $3.0 million cash extension fee. In exchange, the preferred holder received penny warrants exercisable for 4.0 million shares of common stock.
2. Dilution Reduction Impact
The agreement lowers the Anniversary Warrant coverage ratio from 125% to 75% of the outstanding stated value, cutting potential share issuance from 77 million to 34 million shares. This reduction removes a material source of potential dilution for existing shareholders.
3. Timeline and Next Steps
The issuance date for the remaining Anniversary Warrants is extended by 90 days to July 8, 2026, giving the company time to pursue further solutions to eliminate future warrant issuances. Prairie aims to continue optimizing its capital structure and enhancing long-term shareholder value.