Prairie Operating Shares Down 35% to Eliminate Dilution Risk

Prairie Operating shares are down 35% in late day trading after the company announced earlier that it has entered into an agreement with the holder of its Series F Convertible Preferred Stock, providing a path to eliminate any potential dilution associated with the related Anniversary Warrants of the Series F Preferred Stock. Key terms of the agreement include: Immediate repayment of $13.7M in stated value of the Series F Convertible Preferred Stock and waiver of the previously announced $3.0 million cash extension fee agreed to on March 25; A reduction in the shares covered by the Anniversary Warrant from 125% to 75% of the outstanding stated value of the Series F Preferred Stock; Total potential issuance of Anniversary Warrants was reduced from approximately 77M shares as of March 26, to approximately 34M shares as of April 7; Anniversary Warrant issuance date extended 90 days to July 8, so that the company can continue to pursue solutions to eliminate the issuance of any future Anniversary Warrants. In exchange for the above, the holder of the Series F Convertible Preferred Stock received penny warrants exercisable for 4.0M shares of the company's common stock, Prairie Operating noted. Gregory Patton, Executive Vice President and Chief Financial Officer, commented, "This agreement represents the partnership we have with our Series F holder and an important step in eliminating a material source of potential dilution for our shareholders. We are working collaboratively with the holder to further reduce the Series F Preferred Stock over the next 90 days while continuing to optimize the capital structure, with a shared objective of eliminating the remaining warrant related dilution associated with the Anniversary Warrants. We remain focused on completing this process and enhancing long-term shareholder value."