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Pure Acquisition Corp. (PACQ) Releases Results of Warrant Tender


Pure Acquisition Corp. (PACQ) Releases Results of Warrant Tender

Pure Acquisition Corp. (PACQ), announced the results of its warrant tender this afternoon and as expected, a significant number of warrant holders opted to tender at this go-around. If you recall, Pure previously tendered its warrants twice before, both times for $1.00, same as for the current tender offer.

However, by way of background, Post-IPO, Pure had 20,700,000 public warrants outstanding.  At their first tender offer, 248,000 warrants were tendered.  Pure subsequently held a second tender offer in January, where 17,293,805 public warrants were validly tendered.  That left 3,158,195 warrants outstanding out of the original 20,700,000.

At this most recent tender offer, 2,829,307 public warrants were validly tendered, leaving just 328,888 public warrants outstanding, or 1.6% of the original amont. A significant reduction in the warrant overhang.

Pure currently has until May 21, 2020 to close its combination with HighPeak Energy, an independent oil and natural gas company with assets located in the northeastern part of the Midland Basin. That’s roughly a month and a half away and the energy sector is currently in the middle of a very challenging environment. We’ll have to stay tuned and see what develops, but at least Pure now has a cleaner looking capital table.