Battalion Oil (NYSE American: BATL) in $19M preferred buyback, 3,494,259-share conversion
Rhea-AI Filing Summary
Gen IV Investment Opportunities, LLC, a more-than-10% holder of Battalion Oil, entered into a Preferred Stock Repurchase and Conversion Agreement with the company on August 7, 2026. Battalion Oil repurchased 5,138 Series A and 6,578.11 Series A-1 Redeemable Convertible Preferred shares from Gen IV for an aggregate $19,000,000. In the same agreement, 1,231.89 Series A-1, 6,630 Series A-2, 3,789 Series A-3 and 3,789 Series A-4 preferred shares were converted into an aggregate of 3,494,259 common shares, with no additional consideration paid. LSP Generation IV, LSP Investment Advisors and Paul Segal report these transactions but disclaim beneficial ownership except to the extent of their pecuniary interest.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 3,494,259 shares
Net Buy
10 txns
Insider
Gen IV Investment Opportunities, LLC, LSP Generation IV, LLC, LSP Investment Advisors, LLC, Segal Paul
Role
10% Owner | 10% Owner | 10% Owner | 10% Owner
Sold
11,716.11 shs
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Series A Redeemable Convertible Preferred Stock F2, F3, F1, F4, F5 | 5,138 | -- | -- |
| Sale | Series A-1 Redeemable Convertible Preferred Stock F2, F3, F1, F4 | 6,578.11 | -- | -- |
| Conversion | Series A-1 Redeemable Convertible Preferred Stock F2, F3, F5, F1, F4 | 1,231.89 | $0.00 | $0.00 |
| Conversion | Series A-2 Redeemable Convertible Preferred Stock F2, F3, F6, F1, F4 | 6,630 | $0.00 | $0.00 |
| Conversion | Series A-3 Redeemable Convertible Preferred Stock F2, F3, F7, F1, F4 | 3,789 | $0.00 | $0.00 |
| Conversion | Series A-4 Redeemable Convertible Preferred Stock F2, F3, F8, F1, F4 | 3,789 | $0.00 | $0.00 |
| Conversion | Common Stock F1 | 253,815 | $0.00 | $0.00 |
| Conversion | Common Stock F1 | 1,607,845 | $0.00 | $0.00 |
| Conversion | Common Stock F1 | 799,216 | $0.00 | $0.00 |
| Conversion | Common Stock F1 | 833,383 | $0.00 | $0.00 |
Holdings After Transaction:
Series A Redeemable Convertible Preferred Stock — 0 shares (Direct);
Series A-1 Redeemable Convertible Preferred Stock — 0 shares (Direct);
Series A-2 Redeemable Convertible Preferred Stock — 0 shares (Direct);
Series A-3 Redeemable Convertible Preferred Stock — 0 shares (Direct);
Series A-4 Redeemable Convertible Preferred Stock — 0 shares (Direct);
Common Stock — 3,494,259 shares (Direct)
Footnotes (8)
- F1. This Form 4 is jointly filed by Gen IV Investment Opportunities, LLC ("Gen IV"), a Delaware limited liability company, LSP Generation IV, LLC ("LSP Gen IV"), a Delaware limited liability company, LSP Investment Advisors, LLC ("LSP Advisors"), a Delaware limited liability company, and Paul Segal, President of Gen IV. LSP Gen IV, as the managing member of Gen IV, has the power to direct the affairs of Gen IV, including voting and disposing of the shares. LSP Advisors, as the investment manager of Gen IV, also has the power to direct the voting and disposition of the shares held by Gen IV. Mr. Segal as President of Gen IV, also has the power to direct the voting and disposition of the shares Held by Gen IV. For Section 16 purposes, LSP Gen IV, LSP Advisors, and Mr. Segal, disclaim beneficial ownership over the shares reported herein, except to the extent of their pecuniary interest therein.
- F2. On August 7, 2026, Gen IV and the Company entered into the Preferred Stock Repurchase and Conversion Agreement to effect (i) the Company's repurchase of 5,138 shares of Series A Redeemable Convertible Preferred Stock and 6,578.11 shares of Series A-1 Redeemable Convertible Preferred Stock, par value $0.0001 per share ("Series A-1 Preferred Shares") from Gen IV for an aggregate purchase price of $19,000,000; and (ii) the conversion of 1,231.89 shares of Series A-1 Preferred Shares, 6,630 shares of Series A-2 Redeemable Convertible Preferred Stock, par value $0.0001 per share ("Series A-2 Preferred Shares"), 3,789 shares of Series A-3 Redeemable Convertible Preferred Stock, par value $0.0001 per share ("Series A-3 Preferred Shares"), and 3,789 shares of Series A-4 Redeemable Convertible Preferred Stock, par value $0.0001 per share ("Series A-4 Preferred Shares") into an aggregate of 3,494,259 shares of common stock, par value $0.0001 per share ("Common Stock") of the Company.
- F3. No additional consideration was paid in connection with such conversion.
- F4. None of the Series A Preferred Shares, Series A-1 Preferred Shares, Series A-2 Preferred Shares, Series A-3 Preferred Shares or Series A-4 Preferred Shares has an expiration date.
- F5. The shares of Series A-1 Preferred Shares were convertible at any time into shares of Common Stock, subject to the terms and conditions of the Certificate of Designations for the Series A-1 Preferred Shares (the "Series A-1 Certificate of Designation"). The Conversion Ratio for each Series A-1 Preferred Share was calculated as the quotient of (i) the then-applicable liquidation preference (as determined in accordance with the Series A-1 Certificate of Designations) and (ii) the conversion price of $7.63.
- F6. The shares of Series A-2 Preferred Shares were convertible at any time after April 13, 2024 into shares of Common Stock, subject to the terms and conditions of the Certificate of Designations for the Series A-2 Preferred Shares (the "Series A-2 Certificate of Designations"). The Conversion Ratio for each Series A-2 Preferred Share was calculated as the quotient of (i) the then-applicable liquidation preference (as determined in accordance with the Series A-2 Certificate of Designations) and (ii) the conversion price of $6.21.
- F7. The shares of Series A-3 Preferred Shares were convertible at any time after July 24, 2025 into shares of Common Stock, subject to the terms and conditions of the Certificate of Designations for the Series A-3 Preferred Shares (the "Series A-3 Certificate of Designations"). The Conversion Ratio for each Series A-3 Preferred Share was calculated as the quotient of (i) the then-applicable liquidation preference (as determined in accordance with the Series A-3 Certificate of Designations) and (ii) the conversion price of $6.83.
- F8. The shares of Series A-4 Preferred Shares were convertible at any time after September 10, 2024 into shares of Common Stock, subject to the terms and conditions of the Certificate of Designations for the Series A-4 Preferred Shares (the "Series A-4 Certificate of Designations"). The Conversion Ratio for each Series A-4 Preferred Share was calculated as the quotient of (i) the then-applicable liquidation preference (as determined in accordance with the Series A-4 Certificate of Designations) and (ii) the conversion price of $6.42.
Key Figures
Series A preferred repurchased: 5,138 shares
Series A-1 preferred repurchased: 6,578.11 shares
Aggregate repurchase price: $19,000,000
+5 more
8 metrics
Series A preferred repurchased
5,138 shares
Series A Redeemable Convertible Preferred Stock repurchased from Gen IV on August 7, 2026
Series A-1 preferred repurchased
6,578.11 shares
Series A-1 Redeemable Convertible Preferred Stock repurchased from Gen IV on August 7, 2026
Aggregate repurchase price
$19,000,000
Cash paid by Battalion Oil to repurchase Series A and Series A-1 preferred from Gen IV
Series A-1 preferred converted
1,231.89 shares
Series A-1 Redeemable Convertible Preferred Stock converted into common stock
Series A-2 preferred converted
6,630 shares
Series A-2 Redeemable Convertible Preferred Stock converted into common stock
Series A-3 preferred converted
3,789 shares
Series A-3 Redeemable Convertible Preferred Stock converted into common stock
Series A-4 preferred converted
3,789 shares
Series A-4 Redeemable Convertible Preferred Stock converted into common stock
Common shares issued on conversion
3,494,259 shares
Total common stock issued from conversion of Series A-1, A-2, A-3 and A-4 preferred
Key Terms
Preferred Stock Repurchase and Conversion Agreement, Redeemable Convertible Preferred Stock, Certificate of Designations, Conversion Ratio, +1 more
5 terms
Preferred Stock Repurchase and Conversion Agreement financial
"entered into the Preferred Stock Repurchase and Conversion Agreement to effect (i) the Company's repurchase"
Redeemable Convertible Preferred Stock financial
"Series A Redeemable Convertible Preferred Stock and Series A-1 Redeemable Convertible Preferred Stock, par value $0.0001 per share"
A redeemable convertible preferred stock is a special class of company shares that combines three features: it pays priority dividends like a safer, higher-ranking share; it can be converted into regular common shares so holders can join in upside; and it can be redeemed, meaning the company can buy it back for cash. For investors this matters because it offers a mix of downside protection and potential upside, but can change ownership stakes (dilution) and cash obligations depending on whether it’s converted or redeemed.
Certificate of Designations regulatory
"subject to the terms and conditions of the Certificate of Designations for the Series A-1 Preferred Shares"
A certificate of designations is a formal legal document that spells out the specific rights and rules attached to a particular class of stock, most often preferred shares. It tells investors who gets paid first, what dividends or conversion rights exist, and any voting or liquidation priorities—like an instruction sheet that decides which shareholders get preference if a company pays out or is sold. Those terms directly affect a security’s value and risk.
Conversion Ratio financial
"The Conversion Ratio for each Series A-1 Preferred Share was calculated as the quotient"
The conversion ratio is the number of common shares an investor receives when a convertible security (like a bond or preferred share) or an exchangeable instrument is turned into ordinary stock. It matters because it tells investors how much ownership or dilution will occur — similar to knowing how many slices you get when you trade in a coupon — and directly affects the value you get from the convertible and the company’s future share count.
liquidation preference financial
"calculated as the quotient of (i) the then-applicable liquidation preference and (ii) the conversion price"
A liquidation preference is a rule that determines who gets paid first and how much they receive when a company is sold, goes bankrupt, or distributes its assets. It gives certain investors a priority claim—often returning their original investment plus any agreed multiple—before other owners receive money, which shapes how much common shareholders and founders ultimately get; think of it as a front-of-the-line pass that affects payout order and investor returns.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What transactions did Gen IV report in this Form 4 for BATL?
Gen IV reported a preferred stock repurchase and related conversions. Battalion Oil repurchased Series A and Series A-1 preferred from Gen IV for cash and converted additional Series A-1, A-2, A-3 and A-4 preferred into common stock in a single August 7, 2026 agreement.
Which Battalion Oil preferred series were converted and at what stated conversion prices?
Series A-1, A-2, A-3 and A-4 preferred were converted. The Conversion Ratio for each series used a conversion price of $7.63 (A-1), $6.21 (A-2), $6.83 (A-3) and $6.42 (A-4), applied to the then-applicable liquidation preference.
How is beneficial ownership described for LSP Gen IV, LSP Advisors and Paul Segal in the BATL Form 4?
The entities and Paul Segal may be deemed to control Gen IV’s holdings but disclaim full beneficial ownership. They state that, for Section 16 purposes, they disclaim beneficial ownership of the reported shares except to the extent of their pecuniary interest.
Did Gen IV receive any additional consideration for the preferred-to-common conversion in BATL?
No additional consideration was paid for the conversion. The Form 4 states that converting the Series A-1, A-2, A-3 and A-4 Redeemable Convertible Preferred Stock into 3,494,259 common shares occurred without any extra cash or other consideration beyond the existing terms.