Royale Energy accelerates growth transaction to simplify capital structure

Royale Energy (ROYL) announced completion of a series of strategic financial transactions aimed at simplifying its capital structure and more closely aligning the interests of its diverse stakeholders. This series of transactions better positions Royale to pursue future growth opportunities and continue on the path toward relisting on a major exchange. As part of this comprehensive effort, Royale Energy Inc. has executed key agreements that include the issuance of common stock, stock options, and Series 2024 Senior Unsecured Promissory Notes in exchange for all of the outstanding Series B Preferred Stock. As a result, Royale now has one class of equity outstanding, its common stock. These transactions were conducted with former holders of the Company’s Series B Preferred Stock and other long-term liability holders, effectively resolving over $24 million of Series B Preferred liquidation preference value and approximately $3 million of pre-merger liabilities. The recapitalization initiative involved the issuance of common stock and promissory notes to settle outstanding claims, alongside stock options granted as part of an exchange agreement. These measures not only strengthen Royale’s financial position but also ensure that the interests of all stakeholders are more closely aligned with the Company’s long-term objectives.