Hallador Energy Company (NASDAQ: HNRG) has announced a significant development with its wholly owned subsidiary, Hallador Power Company, LLC, executing a conversion transaction commitment agreement with a leading global data center developer. The agreement, effective January 2, 2025, provides exclusivity in negotiations to the counterparty for a period of 105 business days and cumulative payments of up to $5 million to Hallador Power Company, LLC. This includes $1 million due in January, $2 million in March, and an additional $2 million in June if certain conditions precedent to the proposed transaction have not been satisfied by the end of the exclusivity period.
The company's CEO, Brent Bilsland, expressed pleasure in advancing this opportunity with a global leader in data center development, highlighting the legitimacy of the counterparty and the sincerity of both companies' interest in consummating the proposed transaction. He emphasized the potential value creation for shareholders in the long term.
The completion of the proposed transaction is subject to finalizing definitive agreements, with no assurance of the terms or timeframe currently contemplated. Hallador Energy Company is a vertically-integrated independent power producer (IPP) based in Terre Haute, Indiana, with two core businesses: Hallador Power Company, LLC, and Sunrise Coal, LLC.
The company's website is www.halladorenergy.com.
The specifics of the financial terms and the potential impact on the company's future revenue and profitability are yet to be determined, pending the finalization and consummation of the proposed transaction. Following these announcements, the company's shares moved 5.3%, and are now trading at a price of $12.06. For the full picture, make sure to review Hallador Energy's 8-K report.
