Resolute Energy Corporation announced that it had acquired 9.63 million of its outstanding publicly-traded warrants from an affiliate of Raymond James for aggregate consideration of approximately $10.0 million in a private transaction. The repurchased warrants have been retired by the Company. Each warrant entitles the holder to purchase one share of Resolute common stock for $13.00 per share. The warrants expire on September 25, 2014.
Following the repurchase, which is expected to close on June 29, 2012, there remain approximately 33.0 million warrants outstanding, 20.8 million of which are held by affiliates of Resolute. The warrants are listed on the New York Stock Exchange under the symbol "RENWS."
Theodore Gazulis, Executive Vice President and Chief Financial Officer of Resolute, commented, "We are pleased to significantly reduce the potential dilutive effect of these warrants at a modest cost. This expenditure will not have a negative effect on our capital budget for the year. We continue to have ample liquidity to prosecute our business plan and remain positioned to take advantage of opportunities as they arise."