On March 30, 2026, Battalion Oil Corporation announced the issuance of 1,800,000 shares of its common stock, par value $0.0001 per share, to Luminus Energy Partners Master Fund, Ltd. This issuance was executed upon the conversion of 7,803 shares of the Company’s Series A-2 Redeemable Convertible Preferred Stock, also with a par value of $0.0001 per share. The conversion was calculated in accordance with the terms of the Series A-2 Preferred Stock, which included adjustments for any Unpaid Dividend Accrual, using a conversion price of $6.21 per share.

The Series A-2 Preferred Stock was previously issued under a Purchase Agreement dated December 15, 2023, involving the Company and its largest shareholders, who collectively appointed half of the board of directors. The transaction was approved by the board upon the recommendation of a special committee of disinterested directors, ensuring that the terms were evaluated fairly.

This issuance of common stock was conducted in reliance on an exemption from the registration requirements of the Securities Act of 1933, specifically under Section 4(a)(2). This move is expected to have a small positive effect on the stock price as it reflects the company's ongoing financing activities and its ability to convert preferred shares into common equity, which may enhance liquidity and shareholder value in the long run.

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