Form 4: Hallador Energy Director Converts Convertible Note into 190,000 Shares

David C. Hardie, a director of Hallador Energy, converted a convertible note held by Hallador Alternative Assets Fund LLC into 190,000 shares of common stock on June 28, 2024.

Summary

• On June 28, 2024, David C. Hardie, a director of Hallador Energy Co., executed a transaction involving the conversion of a convertible note.
• The convertible note, held by Hallador Alternative Assets Fund LLC (HAAF), was converted into 190,000 shares of Hallador Energy's common stock.
• The original unsecured convertible promissory note was dated August 8, 2022, with a principal amount of $1,000,000.
• Following the reported transaction, Hallador Alternative Assets Fund LLC beneficially owns 2,175,122 shares of common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it reflects a standard financial transaction (conversion of debt to equity) by a company insider. There's no indication of significant positive or negative implications.

Industry Context

This transaction reflects standard financial maneuvers within publicly traded companies, where convertible notes are used for financing and can be converted into equity.

Comparison to Industry Standards

• Convertible notes are a common financing tool used by companies like Hallador Energy, similar to how companies like Tesla or MicroStrategy have utilized convertible debt to raise capital.
• The conversion of debt to equity is a standard practice, comparable to transactions seen in other energy companies and across various sectors.
• The size of the note ($1,000,000) is relatively small compared to larger convertible note offerings by major corporations, which can range from hundreds of millions to billions of dollars.

Related Party Transactions

• The transaction involves Hallador Alternative Assets Fund LLC, which is related to the director, David C. Hardie.

Stakeholder Impact

• The conversion of the note into common stock may slightly dilute existing shareholders' equity.

Key Dates