HNR Acquisition Shareholders Approve Pogo Resources Deal Amid 90% Redemptions

HNR Acquisition (NYSE American:HNRA) announced that its stockholders voted in favor of the business combination with Pogo Resources and to acquire the Grayburg-Jackson oil field in the Permian Basin in Eddy County, New Mexico.

The deal is expected to close as soon as practicable following the satisfaction or waiver of the remaining closing conditions. Afterward, Pogo stock is expected to begin trading on the NYSE American under the current symbol HNRA.

The SPAC said 4,063,777 shares were redeemed out of 4,509,403 shares, or about 90% of shares outstanding.

Preliminary calculations show that approximately $44.1 million ($10.86 per share) will be removed from the trust.

A vote on the deal was postponed last month and the SPAC added a forward purchase agreement with Meteora to shore up its finances. HNR yesterday said it added a non-redemption agreement with Meteora, to reverse the redemption of up to 600,000 shares.

HNR in August cut the purchase price to $63 million in cash plus 2 million shares of a new class of Class B stock, which have no economic rights (voting only) and 2 million units in a newly-formed subsidiary, HNRA Upstream, which are exchangeable for 2 million shares of the company’s newly-created Class A stock.

At deal announcement in January, original terms called for a purchase price of $100 million in cash (of which $15 million could be in a promissory note), plus $20 million in stock.

With offices in Dallas, TX and Hobbs, NM, Pogo’s management comprises industry experts with operational experience at both major oil and gas companies and smaller, entrepreneurial ventures. Read more.

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