In a recent transaction, Pogo Royalty, LLC, a significant shareholder in HNR Acquisition Corp. (NASDAQ:HNRA), has sold a portion of its holdings in the company. The sale involved 8,978 shares of Class A Common Stock at a weighted average price of $1.5132, totaling approximately $13,585.
The shares were sold on September 5, 2024, in multiple transactions with prices ranging from $1.50 to $1.57 per share. The exact number of shares sold at each price point within this range can be provided by the reporting persons upon request, as noted in the footnotes of the transaction report.
Following the sale, Pogo Royalty's beneficial ownership in HNR Acquisition Corp. includes 201,022 shares of Class A Common Stock. Additionally, Pogo Royalty holds 1,800,000 shares of Class B Common Stock and the same number of HNRA Upstream, LLC Class B Units, which are exchangeable for an equal amount of Class A Common Stock.
This transaction was disclosed in a filing with the Securities and Exchange Commission, with Bayard Friedman, an authorized person, signing on behalf of Pogo Royalty, LLC. The sale represents a part of Pogo Royalty's investment in HNR Acquisition Corp., a company involved in the crude petroleum and natural gas industry, headquartered in Houston, Texas.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into the company's financial health and future prospects. The disclosed sale by Pogo Royalty, LLC is part of the regular financial disclosures required by company insiders and significant shareholders.
In other recent news, HNR Acquisition Corp has made significant changes to its equity sales agreement with White Lion Capital LLC, as disclosed in a recent SEC filing. The Delaware-based company has amended its common stock purchase agreement, which was originally dated October 17, 2022. The latest amendment, dated June 17, 2024, introduces changes to the process of "Rapid Purchase," with the closure of such purchases now set to occur on the same trading day that the notice is given. The amendment also removes the maximum share limit for Rapid Purchases, replacing it with a new limitation of 100,000 shares per individual request. The purchase price for Rapid Purchases has been adjusted to match the lowest traded price of the common stock in the hour following White Lion's acceptance of the purchase request. Additionally, White Lion has agreed to a daily public resale limit of the company's shares, set at 7% of the trading volume for any given business day. These recent developments mark a significant shift in the terms of equity sales between HNR Acquisition Corp and White Lion Capital LLC.
InvestingPro Insights
Amid the recent insider sale by Pogo Royalty, LLC, HNR Acquisition Corp. (NASDAQ:HNRA) presents a mix of intriguing metrics and insights. According to InvestingPro data, HNR Acquisition Corp. has a market capitalization of approximately $9.98 million. Notably, the company's revenue for the last twelve months as of Q2 2024 stands at $22.96 million, although it has experienced a significant decline in revenue growth of -57.85% during the same period.
InvestingPro Tips suggest that HNR Acquisition Corp. may be in a position that warrants caution for potential investors. The stock has been identified as being in oversold territory, which could indicate a potential rebound, but this is juxtaposed against the backdrop of the stock having taken a substantial hit over the last week. Additionally, the company's stock price tends to move inversely to market trends, which could be a consideration for those looking to hedge or seeking non-correlated assets.
Concerns are further compounded by the fact that the company's short-term obligations exceed its liquid assets and analysts do not expect the company to be profitable this year. Furthermore, the stock is trading near its 52-week low, and the price has seen a significant decline over the last year. It's worth noting that HNR Acquisition Corp. does not pay a dividend, which may be a factor for income-focused investors.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available at: https://www.investing.com/pro/HNRA, providing a comprehensive view of HNR Acquisition Corp.'s financial health and market position.
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