Royale Energy Announces Plans to Accelerate Growth Transaction to Simplify Capital Structure
Royale Energy Inc. (ROYL) has successfully completed a series of strategic financial transactions aimed at simplifying its capital structure and aligning stakeholder interests. The company has executed key agreements including the issuance of common stock, stock options, and Series 2024 Senior Unsecured Promissory Notes in exchange for all outstanding Series B Preferred Stock. This recapitalization initiative has resolved over $24 million of Series B Preferred liquidation preference value and approximately $3 million of pre-merger liabilities.
The transactions have resulted in Royale now having one class of equity outstanding - its common stock. This simplification is expected to better position the company for future growth opportunities and potentially relist on a major exchange. Chris Parada, Chairman of Royale Energy, stated that this move will enable the company to gain greater access to strategic opportunities and more traditional sources of capital.
Royale Energy Inc. (ROYL) ha completato con successo una serie di operazioni finanziarie strategiche mirate a semplificare la propria struttura di capitale e allineare gli interessi degli azionisti. L'azienda ha firmato importanti accordi, tra cui l'emissione di azioni ordinarie, opzioni su azioni e Prestiti Obbligazionari Non Garantiti Serie 2024 in cambio di tutte le azioni privilegiate Serie B in circolazione. Questa iniziativa di ricapitalizzazione ha risolto oltre 24 milioni di dollari di valore di liquidazione delle azioni privilegiate Serie B e circa 3 milioni di dollari di passività pre-fusione.
Le transazioni hanno portato Royale ad avere una sola classe di capitale in circolazione: le sue azioni ordinarie. Questa semplificazione si prevede possa posizionare meglio l'azienda per future opportunità di crescita e potenzialmente per una nuova quotazione su un'importante borsa valori. Chris Parada, Presidente di Royale Energy, ha dichiarato che questa mossa consentirà all'azienda di accedere a maggiori opportunità strategiche e a fonti di capitale più tradizionali.
Royale Energy Inc. (ROYL) ha completado con éxito una serie de transacciones financieras estratégicas destinadas a simplificar su estructura de capital y alinear los intereses de los accionistas. La compañía ha firmado acuerdos clave, incluyendo la emisión de acciones comunes, opciones sobre acciones y Notas Promisorias no Garantizadas de la Serie 2024 a cambio de todas las acciones preferentes de la Serie B en circulación. Esta iniciativa de recapitalización ha resuelto más de 24 millones de dólares de valor de preferencia de liquidación de la Serie B y aproximadamente 3 millones de dólares en pasivos previos a la fusión.
Las transacciones han resultado en que Royale ahora tenga una clase de capital en circulación: sus acciones comunes. Se espera que esta simplificación posicione mejor a la empresa para oportunidades de crecimiento futuras y potencialmente para re-listarse en una bolsa importante. Chris Parada, Presidente de Royale Energy, declaró que este movimiento permitirá a la empresa acceder a mayores oportunidades estratégicas y a fuentes de capital más tradicionales.
로얄 에너지 주식회사 (ROYL)는 자본 구조를 단순화하고 이해 관계자의 이익을 조정하기 위해 전략적인 금융 거래를 성공적으로 완료했습니다. 이 회사는 주요 계약을 체결했습니다, 여기에는 모든 발행된 B종 우선주에 대한 대가로 보통주, 주식 옵션 및 2024년 시리즈 무담보 어음의 발행이 포함됩니다. 이번 자본 재편성은 2,400만 달러 이상의 B종 우선주 청산 우선 가치와 약 300만 달러의 합병 전 부채를 해결했습니다.
이 거래로 인해 로얄은 이제 발행된 주식이 한 클래스만 남았습니다 - 보통주입니다. 이러한 단순화는 향후 성장 기회를 더 잘 포지셔닝하고 주요 거래소에 재상장될 가능성을 높일 것으로 예상됩니다. 로얄 에너지의 회장인 크리스 파라다(Chris Parada)는 이번 조치가 회사를 더 많은 전략적 기회와 전통적인 자본원에 접근할 수 있게 할 것이라고 밝혔습니다.
Royale Energy Inc. (ROYL) a réussi à mener à bien une série de transactions financières stratégiques visant à simplifier sa structure de capital et à aligner les intérêts des parties prenantes. L'entreprise a signé des accords clés, y compris l'émission d'actions ordinaires, d'options d'achat d'actions et de billets à ordre non garantis de la Série 2024 en échange de toutes les actions privilégiées de la Série B en circulation. Cette initiative de recapitalisation a résolu plus de 24 millions de dollars de valeur de préférence de liquidation de la Série B et environ 3 millions de dollars de passifs d'avant fusion.
Les transactions ont abouti à ce que Royale ait désormais une seule classe de capitaux propres en circulation : ses actions ordinaires. On s'attend à ce que cette simplification positionne mieux l'entreprise pour de futures opportunités de croissance et qu'elle ait la possibilité d'être à nouveau cotée sur une bourse importante. Chris Parada, Président de Royale Energy, a déclaré que cette décision permettra à l'entreprise d'accéder à de plus grandes opportunités stratégiques et à des sources de capital plus traditionnelles.
Royale Energy Inc. (ROYL) hat erfolgreich eine Reihe strategischer finanzieller Transaktionen abgeschlossen, die darauf abzielen, die Kapitalstruktur zu vereinfachen und die Interessen der Stakeholder in Einklang zu bringen. Das Unternehmen hat wichtige Vereinbarungen getroffen, einschließlich der Emission von Stammaktien, Aktienoptionen und unbesicherten Schuldverschreibungen der Serie 2024 im Austausch gegen alle ausstehenden Vorzugsaktien der Serie B. Diese Rekapitalisierungsinitiative hat über 24 Millionen Dollar an Liquidationspräferenzwert der Serie B und ungefähr 3 Millionen Dollar an Verbindlichkeiten vor der Fusion gelöst.
Durch die Transaktionen verfügt Royale nun über eine Klasse von ausgegebenem Eigenkapital - seine Stammaktien. Diese Vereinfachung wird erwartet, um das Unternehmen besser für zukünftige Wachstumsmöglichkeiten zu positionieren und möglicherweise an einer wichtigen Börse neu gelistet zu werden. Chris Parada, Vorsitzender von Royale Energy, erklärte, dass dieser Schritt dem Unternehmen einen besseren Zugang zu strategischen Möglichkeiten und traditionelleren Kapitalquellen verschaffen wird.
- Simplified capital structure with only one class of equity outstanding
- Resolved over $24 million of Series B Preferred liquidation preference value
- Settled approximately $3 million of pre-merger liabilities
- Improved alignment of stakeholder interests
- Better positioned for future growth opportunities and potential relisting on a major exchange
- Issuance of new common stock and promissory notes may lead to potential dilution for existing shareholders
Royale Energy Inc. Simplifies Capital Structure Amidst Plans for Future Growth
SAN DIEGO, Oct. 18, 2024 (GLOBE NEWSWIRE) -- Royale Energy Inc. ("Royale" or the "Company"), a Delaware-based corporation, is pleased to announce the successful completion of a series of strategic financial transactions aimed at simplifying its capital structure and more closely aligning the interests of its diverse stakeholders. This series of transactions better positions Royale to pursue future growth opportunities and continue on the path toward relisting on a major exchange.
As part of this comprehensive effort, Royale Energy Inc. has executed key agreements that include the issuance of common stock, stock options, and Series 2024 Senior Unsecured Promissory Notes in exchange for all of the outstanding Series B Preferred Stock. As a result, Royale now has one class of equity outstanding, its common stock. These transactions were conducted with former holders of the Company’s Series B Preferred Stock and other long-term liability holders, effectively resolving over
The recapitalization initiative involved the issuance of common stock and promissory notes to settle outstanding claims, alongside stock options granted as part of an exchange agreement. These measures not only strengthen Royale’s financial position but also ensure that the interests of all stakeholders are more closely aligned with the Company’s long-term objectives.
“By simplifying our capital structure, we are positioning Royale to pursue new opportunities that align with our growth strategy and deliver enhanced value to our shareholders” said Chris Parada, Chairman of Royale Energy Inc. “This important step will enable the company to gain greater access to even more strategic opportunities as well as access to more traditional sources of capital. I would like to express my gratitude to the former preferred stockholders, other stakeholders, and the Royale Board for their efforts to conclude this transformational recapitalization.”
Johnny Jordan, CEO of Royale Energy Inc., added, “Consolidating all shareholders into a single class of stock demonstrates our commitment to building shareholder value for everyone. This move underscores our dedication to creating a unified and equitable structure that benefits all of our investors.”
Royale Energy Inc. remains committed to executing its strategic vision and delivering value through disciplined financial management and targeted growth initiatives. The successful completion of these transactions marks a significant step forward in the Company’s ongoing efforts to streamline operations and enhance shareholder value.
About Royale Energy Inc.: Royale Energy Inc. is a Delaware corporation engaged in the exploration, development, and production of oil and natural gas. The Company is focused on creating long-term value through the efficient management of its assets and strategic partnerships.
Forward-Looking Statement
In addition to historical information contained herein, this news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, subject to various risks and uncertainties that could cause the company’s actual results to differ materially from those in the “forward-looking” statements. While the company believes its forward-looking statements are based upon reasonable assumptions, there are factors that are difficult to predict and that are influenced by economic and other conditions beyond the company’s control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.
For more information, please visit https://www.royl.com or contact Investor Relations at IR@royl.com.
FAQ
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