HighPeak Energy, Inc. Announces Closing of $85 Million Private Placement

Rhea-AI Summary

HighPeak Energy (NASDAQ: HPK) has successfully closed an $85 million private placement of 3.9 million shares at $21.61 each. This placement occurred in stages, starting on August 22, 2022, and concluding on September 2, 2022. Key participants included CEO Jack Hightower and the John Paul DeJoria Family Trust. HighPeak intends to use these funds for general corporate purposes, which will improve its balance sheet, reduce leverage, and enhance liquidity. Management's significant participation reflects confidence in the company's growth strategy.

Positive

• Raised $85 million through private placement.
• Improved balance sheet and enhanced liquidity.
• Strong management participation indicates confidence in growth strategy.

Negative

• None.

FORT WORTH, Texas, Sept. 06, 2022 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (NASDAQ: HPK) (“HighPeak” or the “Company”), today announced that it has closed an aggregate $85 million private placement of 3.9 million newly issued shares of the Company’s common stock at a price per share of $21.61 as determined by the 5-day volume weighted average closing price for the five days immediately prior to August 22, 2022. The initial private placement closing occurred on August 22, 2022 with multiple subsequent closings through September 2, 2022. The Company intends to use the proceeds of the private placement for general corporate purposes.

Purchasers, among others, included Jack Hightower, Chief Executive Officer (462,749 shares), additional members of the Company’s management team (220,969 shares) and The John Paul DeJoria Family Trust (2,313,744 shares).

HighPeak Chairman and Chief Executive Officer, Jack Hightower, said, “This private placement capital raise improves the Company’s balance sheet, lowers leverage and enhances our liquidity. The substantial participation by the management team and one of the Company’s largest stockholders is a testament to their collective confidence in the continued growth strategy and rich underlying asset value of the Company.”

About HighPeak Energy, Inc.

HighPeak Energy is a publicly traded independent oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com.

Investor Contact:
Ryan Hightower
Vice President, Business Development
817.850.9204 
rhightower@highpeakenergy.com

Source: HighPeak Energy, Inc.

FAQ

What was the total amount raised in HighPeak Energy's private placement?

HighPeak Energy raised a total of $85 million in its private placement.

How many shares were issued in HighPeak Energy's private placement?

HighPeak Energy issued 3.9 million shares in the private placement.

What was the price per share in HighPeak Energy's private placement?

The price per share in HighPeak Energy's private placement was $21.61.

Who were the key participants in HighPeak Energy's private placement?

Key participants included CEO Jack Hightower and the John Paul DeJoria Family Trust.

When did HighPeak Energy's private placement close?

HighPeak Energy's private placement closed in stages from August 22, 2022, to September 2, 2022.