RAM Energy Headbutting Markets, Up 75%

On Thursday morning, RAM Energy RAM announced a $550 million recapitalization agreement with Halcon Resources, which Benzinga Professional cover in real-time. RAM also announced that it regained compliance with the NASDAQ Market Exchange. Investors are obviously liking these recent developments as shares of RAM Energy are trading over 75% higher. Part of the recapitalization includes $275 million in new common stock, a $275 million five-year convertible note, and warrants for the purchase of an additional 110 million shares of common stock. A majority of RAM's current shareholders have agreed to approve the transactions contemplated by the agreement through action by written consent of stockholders. The transaction is expected to close in the first quarter of 2012. Upon closing of the transaction, RAM will issue 220 million shares of common stock to Halcon, representing approximately 74% of RAM's pro forma outstanding common stock. The $275 million convertible note will bear interest at 8% per annum and may be converted by the holder into shares of common stock at any time subsequent to two years from the closing date, subject to earlier conversion under certain circumstances. The conversion price will be $1.50 per share, subject to adjustment upon certain events. The warrants will be exercisable for five years from the closing date at an exercise price of $1.50 per share, subject to adjustment upon certain events. Also, RAM Energy announced today that the Company had received a letter from the NASDAQ Stock Market on December 16, 2011, advising that RAM had regained compliance with NASDAQ's minimum bid price listing requirements. Previously RAM received a notice of deficiency on September 15, 2011 from NASDAQ notifying the Company that for the 30 consecutive business days preceding the date of the letter the bid price of the Company's common stock had closed below the $1.00 per share minimum bid price required for continued listing on the NASDAQ Global Market and that RAM had 180 days to regain compliance by meeting or exceeding the minimum bid price for a period of at least 10 consecutive trading days. Currently, shares of RAM Energy are trading higher by about 75% at $1.93, up $0.83 on the session.