Battalion Oil Corp Announces $19M Preferred Stock Repurchase & Conversion

What Happened
Battalion Oil Corporation filed an 8-K on August 7, 2026, announcing a Preferred Stock Repurchase and Conversion Agreement with Gen IV Investment Opportunities, LLC. Under the agreement the company repurchased certain Series A and A‑1 preferred shares for $19,000,000 and Gen IV converted multiple series of preferred stock into an aggregate of 3,494,258 shares of common stock. After closing, Gen IV no longer holds any of the company’s preferred stock; the repurchased preferred shares will be retired and cancelled. The companies also executed a Voting and Lock-Up Agreement on the same date.

Key Details

• Repurchase price: $19,000,000 for 5,138 shares of Series A and 6,578.11 shares of Series A‑1 preferred stock.
• Conversion: Gen IV converted 1,231.89 shares of Series A‑1, 6,630 shares of Series A‑2, 3,789 shares of Series A‑3, and 3,789 shares of Series A‑4 into 3,494,258 common shares.
• Post‑transaction: Gen IV holds no preferred shares; repurchased preferred shares will be retired/cancelled.
• Voting & lock‑up: Gen IV agreed for 12 months to vote its voting securities in favor of the board’s recommended director nominees and auditor ratification, and is subject to customary lock‑up terms.

Why It Matters
This transaction simplifies Battalion’s capital structure by removing Gen IV as a preferred‑share holder and retiring those preferred shares. The conversion issued 3,494,258 new common shares to Gen IV, which increases common share count (i.e., potential dilution) and aligns Gen IV with management for at least 12 months via the voting and lock‑up agreement. Investors should note the cash outlay ($19M) and the issuance of common stock when assessing the company’s capitalization and ownership mix following the transaction.