Unit Corporation
08/04/2021 | Press release | Distributed by Public on 08/04/2021 12:03
Issuance of Warrants (Form 8-K)
Issuance of Warrants
On July 29, 2021, the Company initiated the issuance of approximately 10,500 Warrants to holders of the Company's old common stock that did not opt-out of the releases under the Plan and that owned their shares of old common stock through Direct Registration. Under the Plan, all Warrants were issued in book-entry form through the facilities of DTC.
The Company expects to issue approximately 26,100 more Warrants to the holders of the old common stock that did not opt-out of the releases under the Plan and owned their shares through Direct Registration. Under the Plan, such additional Warrants will be issued in book-entry form through the facilities of DTC, and each holder owning shares of old common stock through Direct Registration must provide that holder's brokerage account information to the Company to receive such holder's distribution of Warrants. Holders of shares of the old common stock that owned shares through Direct Registration should contact Prime Clerk, LLC at (877) 720-6581 (Toll Free) or (646) 979-4412 (Local) to obtain the forms necessary to receive their distribution. Any distribution not made will be deemed forfeited at the first anniversary of the Effective Date.
The exercise price of the Warrants will be determined, and the Warrants will become exercisable once the Debtors have completed the claims reconciliation process and resolved any objections to disputed claims. The Company will calculate the initial exercise price per share for the Warrants, which will be set at an amount that implies a recovery by holders of the Subordinated Notes of the $650 million principal amount of the Subordinated Notes plus interest thereon to the May 15, 2021 maturity date of the Subordinated Notes. The Warrants will expire on the earliest of (i) September 3, 2027, (ii) the consummation of a Cash Sale, as defined in the Warrant Agreement, dated as of September 3, 2020, between the Company and American Stock Transfer & Trust Company, LLC (Warrant Agreement), and (iii) the consummation of a liquidation, dissolution, or winding up of the Company (such earliest date, the Expiration Date). Each Warrant not exercised by the Expiration Date will expire, and all rights under the Warrants and the Warrant Agreement will cease on the Expiration Date.
Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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