Michael L. Hollis - Mar 17, 2022 Form 4 Insider Report for HighPeak Energy, Inc. (HPK)

Role
President, Director
Signature
/s/ Steven W. Tholen as Attorney in Fact for Michael L. Hollis
Stock symbol
HPK
Transactions as of
Mar 17, 2022
Transactions value $
-$3,771
Form type
4
Date filed
3/21/2022, 09:50 PM
Previous filing
Dec 7, 2021
Next filing
May 4, 2022

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type Sym Class Transaction Value $ Shares Change % * Price $ Shares After Date Underlying Class Amount Exercise Price Ownership Footnotes
transaction HPK Contingent Value Rights Sale -$3.75K -15K -55.97% $0.25* 11.8K Mar 17, 2022 Common Stock, par value $0.0001 per share 31.9K Direct F1, F2, F5
transaction HPK Contingent Value Rights Sale -$21 -46 -0.39% $0.45* 11.8K Mar 21, 2022 Common Stock, par value $0.0001 per share 97 Direct F1, F3, F5
holding HPK Contingent Value Rights 100 Mar 17, 2022 Common Stock, par value $0.0001 per share 212 See Footnote F1, F4
holding HPK Contingent Value Rights 100 Mar 17, 2022 Common Stock, par value $0.0001 per share 212 See Footnote F1, F4
* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id Content
F1 Pursuant to the Contingent Value Rights Agreement, dated August 21, 2020 (the "CVR Agreement"), by and among (i) HighPeak Energy, Inc. (the "Issuer"), (ii) HighPeak Energy, LP, (iii) HighPeak Energy II, LP, (iv) HighPeak Pure Acquisition, LLC and (v) Continental Stock Transfer & Trust Company, as rights agent, entered into in connection with the Transaction, each CVR entitles Qualifying CVR Holders (as defined in the CVR Agreement) to receive, in certain circumstances, additional shares of common stock (or, in limited circumstances, such other form as is provided for in the CVR Agreement), if necessary, to satisfy a 10% preferred simple annual return (based on a $10.00 per share price at the closing of the Transaction), subject to a floor downside per-share price of $4.00, for certain qualifying holders as of the CVR Maturity Date (as defined in the CVR Agreement).
F2 The price reported in Column 8 is the price received in a single sale transaction of contingent value rights.
F3 The price reported in Column 8 is the price received in a single sale transaction of contingent value rights.
F4 Represents contingent value rights of the Issuer issued to the reporting person's son in exchange for Class A common stock, par value $0.0001 per share of Pure Acquisition Corp. ("Pure") in connection with the closing of the business combination between Pure and the Issuer on August 21, 2020.
F5 The Reporting Person's sale of Contingent Value Rights reported herein was matchable under Section 16(b) of the Securities Act of 1934, as amended. The Reporting Person has agreed to pay the Issuer, upon settlement of the sale, the full amount of profit realized in connection with the short-swing transaction, less transaction costs.