HOUSTON, March 4, 2026, 14:54 (CST)
- Battalion Oil Corporation said it will raise about $15 million in a private placement priced at $5.50 per share, using common stock and/or prefunded warrants. 1
- The company expects net proceeds of about $14.1 million and said the financing is slated to close on March 4, subject to customary conditions. 2
Battalion Oil Corporation (NYSE American: BATL) said on Tuesday it has agreed to raise about $15 million from a new institutional investor in a private placement priced at $5.50 per share, using common stock and/or prefunded warrants. The company did not name the buyer. Battalion shares were down about 33% at $18.58 on Wednesday afternoon after trading between $12.95 and $26.08. 3
Battalion expects to receive net proceeds of about $14.1 million after fees and will use the cash for working capital and general corporate purposes. Roth Capital Partners is acting as sole placement agent, and the company expects to close the deal on March 4, subject to customary conditions. 4
The securities are being sold without registration under the U.S. Securities Act, meaning they cannot be resold publicly unless registered or exempt. Battalion plans to file a Form S-3 resale registration statement within 20 days of closing to cover the shares and warrants issued in the deal. 5
The placement may include prefunded warrants, which are like options where most of the purchase price is paid upfront and the holder exercises later for a nominal amount. In the announcement, Battalion described the release as a Rule 135c notice and said any resale offering would be made through a prospectus once a registration statement is effective. 6
Trading in BATL was halted for “news pending” on Tuesday morning and resumed about an hour later, according to alerts carried by TipRanks that were first published by TheFly. The stock has been prone to sharp moves and short pauses as the news hit. 7
Shares jumped about 130% on Tuesday morning to roughly $27, RTTNews reported, and touched $29.70 at the session high. By late Wednesday, the market was still trying to price a $5.50 deal into a stock that has been trading multiples of that level. 8
In a February 24 filing, Battalion said it completed the sale of West Quito Draw assets in Ward County, Texas for an adjusted cash price of about $60.1 million. The company said it was required to use part of the proceeds for a $40 million mandatory prepayment under its senior secured credit agreement. 9
But Battalion cautioned that the financing depends on market and other conditions and may not be completed on the expected terms. Even if it closes on time, registering the new shares for resale could add another overhang to a stock already jumpy. 10
For smaller U.S. producers, the path to cash can be messy: asset sales, lender talks, then equity at a discount. Battalion’s placement is meant to buy breathing room, not solve the balance sheet.
