Vanguard Natural Resources Inc. (fka VNRRQ)

[RyGuy]

These are new shares.

The old shares were converted to Warrants.

The stock we have the opportunity to purchase today (VNRR) is newly created.

When the creditors and bankruptcy court approved their plan of reorganization in 2017 it included the following:

“the issuance to the Company’s preferred unitholders of such holders’ pro rata share of (i) New Common Stock and (ii) warrants to purchase additional shares of New Common Stock at a strike price of $44.25; and
the issuance to the Company’s common unitholders of such holders’ pro rata share of warrants to purchase shares of New Common Stock at a strike price of $61.45.
The warrant strike prices were calculated based on the Company’s plan equity value of $20.00 per share of New Common Stock, which the Bankruptcy Court confirmed as part of the Plan.”

For those former creditors and banks to be in the money on their warrants, they apparently viewed that the common equity would be worth $44.25 by February 2021. Any institutional investors in the old common equity need the common price to reach $61.25 to be of value.