Battalion Oil Corporation announced that it has entered into the Series A-2 Purchase Agreement with returning investor Gen IV Investment Opportunities LLC to issue 6,630 shares of Series A-2 Convertible Redeemable Preferred Stock, par value $0.0001 per share at an issue price of $980.392156 per share for gross proceeds of up to $6,499,999.99428 on December 15, 2023. The shares of Series A-2 Preferred Stock may be converted into Common Stock at any time based on the then-applicable liquidation preference divided by the applicable conversion price. The ordinary conversion price of the Series A-2 Preferred Stock is $6.21 per share and is subject to adjustment for stock splits, combinations, certain distributions or similar events.

The shares of Series A-2 Preferred Stock are also subject to redemption by the Issuer at any time following the closing date of the issuance of shares of Series A-2 Preferred Stock in accordance with the terms of the Series A-2 Certificate of Designations. In the event of a change of control transaction, the shares of Series A-2 Preferred Stock are subject to redemption or conversion in accordance with the terms of the Series A-2 Certificate of Designations.