James W. Wallis, a significant shareholder of Prairie Operating Co. (OTC:PROP), engaged in a series of stock transactions, according to a recent filing with the U.S. Securities and Exchange Commission. Wallis purchased shares of the energy company valued at approximately $623,487 and sold shares totaling about $207,808.
On September 7, 2023, Wallis acquired 204,422 shares of Prairie Operating Co.'s common stock at a price of $3.05 per share. This purchase was part of a larger transaction where Wallis also bought derivative securities, including Series D Convertible Preferred Stock and Series A and B Warrants. The total purchase price for these securities was $1.5 million, as noted in the footnotes of the filing. The prices and amounts of the securities have been adjusted to reflect a reverse stock split that occurred on October 16, 2023.
In a separate transaction on October 10, 2023, Wallis sold 68,134 shares of common stock at the same price of $3.05 per share. The sale was part of a disposal that also included Series D Convertible Preferred Stock and Series A and B Warrants, with a total sale value of $500,000.
Wallis's activities also included a transaction on May 1, 2024, where derivative securities were exercised at a price of $6.00 per share, resulting in a total value of $382,314. All transactions were conducted indirectly through the James W. Wallis Living Trust.
Investors often monitor insider buying and selling as it can provide insights into a company's financial health and future prospects. The transactions by Wallis represent significant financial moves within Prairie Operating Co., a firm engaged in the crude petroleum and natural gas sector, with a business address in Houston, Texas.
The reported transactions are part of the company's regular disclosure of executive trading activity, providing transparency to the market and allowing investors to stay informed about the actions of key company insiders.
In other recent news, Prairie Operating Co. has renegotiated the terms of its asset purchase agreement with Nickel Road Development LLC and Nickel Road Operating LLC, resulting in a reduced cash consideration of $57 million. This amendment also includes changes to the effective time of the agreement and transaction-related terms. The company has also reached an agreement with Narrogal Nominees Pty Ltd, a significant shareholder, adjusting the beneficial ownership limitation ceiling from 9.99% to 49.9% and introducing a ten-year standstill provision.
Furthermore, Prairie Operating Co. has secured $24 million from the full exercise of Series E B Warrants by Watermill Capital Partners. The company also plans to initiate a drilling program at its Shelduck South property in Colorado, involving eight new wells across 1,280 mineral acres. This venture aligns with Prairie's commitment to lower emissions and is expected to commence production in the fourth quarter of 2024.
In addition, Prairie Operating Co. is set to join the Russell 3000 Index, a development indicative of the company's growth strategies and progress. These recent developments highlight Prairie Operating Co.'s commitment to responsible development and growth.
InvestingPro Insights
As Prairie Operating Co. (OTC:PROP) experiences shifts in insider trading activity, investors are keen to understand the underlying financial metrics that may influence such decisions. According to InvestingPro data, Prairie Operating Co. has a market cap of approximately $248.85 million, reflecting the company's valuation in the market. Despite a noteworthy revenue growth of 501.39% in the last twelve months as of Q2 2024, the company's operating income margin was reported at a staggering -1954.4%, indicating significant operational expenses relative to its revenue.
One of the InvestingPro Tips suggests that Prairie Operating Co.'s stock price movements are quite volatile, which could be a factor in the timing of Wallis's transactions. Additionally, the stock has had a significant return over the last week, with a price total return of 43.53%. These insights may help investors understand the potential risks and rewards associated with the company's stock.
For those interested in a deeper analysis, there are additional InvestingPro Tips available on the platform, such as the stock's valuation multiples and liquidity concerns. For instance, Prairie Operating Co. is trading at a high Price / Book multiple of 6.49 as of the last twelve months ending Q2 2024, which may suggest that the stock is valued at a premium compared to its book value. In total, InvestingPro offers a comprehensive list of tips for Prairie Operating Co., which can be accessed for further detailed analysis and investment considerations.
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