-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V21oaZa60oNpbM/pNVXSGp1RfqN9J7XFQpOQSGbkrP/SdIeDhaM5vggLmIds+TnH 4SVGBYU3rJ+t3aFDq607xg== 0001000096-97-000976.txt : 19971210 0001000096-97-000976.hdr.sgml : 19971210 ACCESSION NUMBER: 0001000096-97-000976 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971031 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19971209 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHAPARRAL RESOURCES INC CENTRAL INDEX KEY: 0000019252 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 840630863 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 000-07261 FILM NUMBER: 97734856 BUSINESS ADDRESS: STREET 1: 3400 BISSONNET STREET STREET 2: SUITE 135 CITY: HOUSTON STATE: TX ZIP: 77005 BUSINESS PHONE: 713-669-09 MAIL ADDRESS: STREET 1: 621 17TH STREET SUITE 1301 CITY: DENVER STATE: CO ZIP: 80293 8-K/A 1 FORM 8-K/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K/A CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 31, 1997 CHAPARRAL RESOURCES, INC. ---------------------------------------------------- (Exact name of registrant as specified in its charter) Colorado 0-7261 84-0630863 -------- ------ ---------- (State or other jurisdiction (Commission File No.) (I.R.S. Employer of incorporation) Identification No.) 3400 Bissonnet Street, Suite 135, Houston, Texas 77005 ------------------------------------------------ ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) 669-0932 Item 5. OTHER EVENTS. ------------- On October 31, 1997, Ted Collins, Jr. and Michael J. Muckleroy were appointed directors of Chaparral Resources, Inc. ("Company") to fill the vacancies on the Board of Directors of the Company created by the resignation as a director on October 1, 1997, of Jay W. McGee and created by an increase in the number of directors. Mr. Collins, age 59, has been the President of Collins & Ware, Inc., an independent oil and gas company, since 1988. Mr. Collins was the President of Enron Oil & Gas Co., an oil and gas company, from 1982 to 1988 and was the Executive Vice President and a director of American Quasar Petroleum Co., from 1969 to 1982. Mr. Collins is a director of Hanover Compression Company, Mid Coast Energy Resources, Inc. and Queen Sand Resources, Inc. Mr. Muckleroy, age 67, has been an independent oil operator since 1994. Mr. Muckleroy was the Chairman and the Chief Executive Officer of Enron Liquid Fuels, a subsidiary of Enron Corp., which is engaged in the processing and marketing of oil and gas and the manufacture of appliances and the distribution of liquid gas, from 1984 to 1994. On November 24, 1997, the Company executed a Subscription Agreement ("Agreement") with an investor which was not affiliated with the Company. Pursuant to the Agreement, the Company agreed to sell to the investor 75,000 shares of the Company's Series A Preferred Stock, no par value, for a purchase price of $100.00 per share or an aggregate purchase price of Seven Million Five Hundred Thousand Dollars ($7,500,000), 75,000 shares of the Company's Series B Preferred Stock, no par value, for a purchase price of $100.00 per share or an aggregate purchase price of Seven Million Five Hundred Thousand Dollars ($7,500,000), and 75,000 shares of the Company's Series C Preferred Stock, no par value, for a purchase price of $100.00 per share or an aggregate purchase price of Seven Million Five Hundred Thousand Dollars ($7,500,000). The purchase and sale of the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock is to occur at four separate closings. The funds for the first purchase, which consists of 50,000 shares of Series A Preferred Stock for a purchase price of $5,000,000, were received on November 25, 1997. The second closing, with respect to the purchase and sale of the remaining 25,000 shares of Series A Preferred Stock for a purchase price of $2,500,000, is to occur on a date mutually agreeable to the parties to the Agreement but in no event later than January 31, 1998. The third closing, with respect to the purchase and sale of 75,000 shares of Series B Preferred Stock for a purchase price of $7,500,000, is to occur on a date mutually agreeable to the parties to the Agreement but in no event later than April 30, 1998. The fourth closing, with respect to the purchase and sale of 75,000 shares of Series C Preferred Stock for a purchase price of $7,500,000, is to occur on a date mutually agreeable to the parties to the Agreement but in no event later than June 30, 1998. The Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock will be entitled to receive cumulative dividends at the annual rate of $5.00 per share and will have a redemption price of $100.00 plus any unpaid dividends. 2 Commencing on November 30, 2002, April 30, 2003 and June 30, 2003, the Company will be required to redeem the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, respectively, to the extent of the lesser of (i) the number of shares of the respective series outstanding on each scheduled redemption date or (ii) one-third of the largest number of shares of each respective series outstanding at any time prior to the first scheduled redemption date for such series. The Company has the right to redeem all or any portion of any shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock prior thereto. Each holder of shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock is entitled to vote on all matters in an amount equal to the largest number of full shares of common stock into which all shares of the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock held by such holders are convertible. Further, the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock is convertible at the option of the holders thereof at any time or from time to time on or prior to the redemption date into common stock. The conversion price of the Series A Preferred Stock is initially $2.25 per share; the conversion price of the Series B Preferred Stock is initially $3.00 per share; and the conversion price of the Series C Preferred Stock is initially $4.25 per share. The number of shares of common stock issuable upon conversion of each share of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock will be determined by dividing $100 by the conversion price per share. The holders of the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock have demand registration rights with respect to the underlying common stock and the Company has agreed to register the underlying common stock on most registration statements filed by the Company. Allen & Company Incorporated acted as placement agent in connection with the sale of the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock. Allen & Company Incorporated elected to receive its fees in the form of warrants to purchase 900,000 shares of the Company's common stock that are exercisable through November 25, 2002, at an exercise price of $0.01 per share. Item 7. FINANCIAL STATEMENTS AND EXHIBITS. ---------------------------------- (c) Exhibits. Exhibit 3.1 Articles of Amendment to the Restated Articles of Incorporation + Amendments dated November 25, 1997 which are incorporated by reference to Exhibit 3.1 to the original Current Report on Form 8-K dated October 31, 1997 that was filed on December 2, 1997. 3 Exhibit 10.1 Warrant Certificate entitling Allen & Company Incorporated to purchase up to 900,000 shares of Common Stock of Chaparral Resources, Inc. Exhibit 10.19 Form of Subscription Agreement dated November 21, 1997 which is incorporated by reference to Exhibit 10.19 to the original Current Report on Form 8-K dated October 31, 1997 that was filed on December 2, 1997. 4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: December 9, 1997 CHAPARRAL RESOURCES, INC. By: /s/ HOWARD KARREN ------------------------------------- Howard Karren, President 5 EXHIBIT INDEX Exhibit 3.1 Articles of Amendment to the Restated Articles of Incorporation + Amendments dated November 25, 1997 which are incorporated by reference to Exhibit 3.1 to the original Current Report on Form 8-K dated October 31, 1997 that was filed on December 2, 1997. Exhibit 10.1 Warrant Certificate entitling Allen & Company Incorporated to purchase up to 900,000 shares of Common Stock of Chaparral Resources, Inc. Exhibit 10.19 Form of Subscription Agreement dated November 21, 1997 which is incorporated by reference to Exhibit 10.19 to the original Current Report on Form 8-K dated October 31, 1997 that was filed on December 2, 1997. 6 EX-10.1 2 WARRANT CERTIFICATE THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE LAWS OF ANY STATE. THEY MAY NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. 900,000 Warrant Shares CHAPARRAL RESOURCES, INC. WARRANT CERTIFICATE This warrant certificate ("Warrant Certificate") certifies that for value received Allen & Company Incorporated or registered assigns (the "Holder") is the owner of the number of warrant shares specified above, each of which entitles the Holder thereof to purchase, at any time on or before the Expiration Date (hereinafter defined), one fully paid and non-assessable share of Common Stock, $.10 par value ("Common Stock"), of Chaparral Resources, Inc., a Colorado corporation (the "Company"), for the Purchase Price (defined in Paragraph 1 below) in lawful money of the United States of America (subject to adjustment as hereinafter provided). 1. Warrant; Purchase Price ----------------------- This Warrant shall entitle the Holder initially to purchase 900,000 shares of Common Stock of the Company and the purchase price payable upon exercise of the Warrant (the "Purchase Price") shall be $.01 per share of Common Stock. The Purchase Price and number of shares of Common Stock issuable upon exercise of this Warrant are subject to adjustment as provided in Article 6 hereof. The shares of Common Stock issuable upon exercise of the Warrant (and/or other shares of common stock so issuable by reason of any adjustments pursuant to Article 6) are sometimes referred to herein as the "Warrant Shares". 2. Exercise; Expiration Date ------------------------- 2.1 The Warrant is exercisable, at the option of the Holder, in whole or in part at any time and from time to time after issuance and on or before the Expiration Date, upon surrender of this Warrant Certificate to the Company together with a duly completed Notice of Exercise, in the form attached hereto as Exhibit A, and payment of the Purchase Price. In the case of exercise of less than the entire Warrant represented by this Warrant Certificate, the Company shall cancel the Warrant Certificate upon the surrender thereof and shall execute and deliver a new Warrant Certificate for the balance of such Warrant. 2.2 The term "Expiration Date" shall mean 5:00 p.m. New York time on November 25, 2002, or if such day shall in the State of New York be a holiday or a day on which banks are authorized to close, then 5:00 p.m. New York time the next following day which in the State of New York is not a holiday or a day on which banks are authorized to close. 3. Registration and Transfer on Company Books ------------------------------------------ 3.1 The Company shall maintain books for the registration and transfer of the Warrant and the registration and transfer of the Warrant Shares. 3.2 Prior to due presentment for registration of transfer of this Warrant Certificate, or the Warrant Shares, the Company may deem and treat the registered Holder as the absolute owner thereof. 4. Reservation of Shares --------------------- The Company covenants that it will at all times reserve and keep available out of its authorized capital stock, solely for the purpose of issue upon exercise of the Warrant, such number of shares of capital stock as shall then be issuable upon the exercise of all outstanding Warrant. The Company covenants that all shares of capital stock which shall be issuable upon exercise of the Warrant shall be duly and validly issued and fully paid and non-assessable and free from all taxes, liens and charges with respect to the issue thereof, and that upon issuance such shares shall be listed on each national securities exchange, if any, on which the other shares of such outstanding capital stock of the Company are then listed. 5. Loss or Mutilation ------------------ Upon receipt by the Company of reasonable evidence of the ownership of and the loss, theft, destruction or mutilation of any Warrant Certificate and, in the case of loss, theft or destruction, of indemnity reasonably satisfactory to the Company, or, in the case of mutilation, upon surrender and cancellation of the mutilated Warrant Certificate, the Company shall execute and deliver in lieu thereof a new Warrant Certificate representing an equal number of Warrant Shares. - 2 - 6. Adjustment of Purchase Price and Number of Shares Deliverable ------------------------------------------------------------- 6.1 The number of Warrant Shares purchasable upon the exercise of the Warrant and the Purchase Price with respect to the Warrant Shares shall be subject to adjustment as follows: (a) In case the Company shall (i) declare a dividend or make a distribution on its Common Stock payable in shares of its capital stock, (ii) subdivide its outstanding shares of Common Stock through stock split or otherwise, (iii) combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock, or (iv) issue by reclassification of its of Common Stock (including any reclassification in connection with a consolidation or merger in which the Company is the continuing corporation) other securities of the Company, the number and/or nature of Warrant Shares purchasable upon exercise of the Warrant immediately prior thereto shall be adjusted so that the Holder shall be entitled to receive the kind and number of Warrant Shares or other securities of the Company which he would have owned or have been entitled to receive after the happening of any of the events described above, had such Warrant been exercised immediately prior to the happening of such event or any record date with respect thereto. Any adjustment made pursuant to this paragraph (a) shall become effective retroactively as of the record date of such event. (b) In the event of any capital reorganization or any reclassification of the capital stock of the Company or in case of the consolidation or merger of the Company with another corporation (other than a consolidation or merger in which the outstanding shares of the Company's Common Stock are not converted into or exchanged for other rights or interests), or in the case of any sale, transfer or other disposition to another corporation of all or substantially all the properties and assets of the Company, the Holder of the Warrant shall thereafter be entitled to purchase (and it shall be a condition to the consummation of any such reorganization, reclassification, consolidation, merger, sale, transfer or other disposition that appropriate provisions shall be made so that such Holder shall thereafter be entitled to purchase) the kind and amount of shares of stock and other securities and property (including cash) which the Holder would have been entitled to receive had such Warrant been exercised immediately prior to the effective date of such reorganization, reclassification, consolidation, merger, sale, transfer or other disposition; and in any such case appropriate adjustments shall be made in the application of the provisions of this Article 6 with respect to rights and interest thereafter of the Holder of the Warrant to the end that the - 3 - provisions of this Article 6 shall thereafter be applicable, as near as reasonably may be, in relation to any shares or other property thereafter purchasable upon the exercise of the Warrant. The provisions of this Section 6.1(b) shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales, transfers or other dispositions. (c) Whenever the number of Warrant Shares purchasable upon the exercise of the Warrant is adjusted, as provided in this Section 6.1, the Purchase Price with respect to the Warrant Shares shall be adjusted by multiplying such Purchase Price immediately prior to such adjustment by a fraction, of which the numerator shall be the number of Warrant Shares purchasable upon the exercise of the Warrant immediately prior to such adjustment, and of which the denominator shall be the number of Warrant Shares so purchasable immediately thereafter. 6.2 Whenever the number of Warrant Shares purchasable upon the exercise of the Warrant or the Purchase Price of such Warrant Shares is adjusted, as herein provided, the Company shall mail to the Holder, at the address of the Holder shown on the books of the Company, a notice of such adjustment or adjustments, prepared and signed by the Chief Financial Officer or Secretary of the Company, which sets forth the number of Warrant Shares purchasable upon the exercise of the Warrant and the Purchase Price of such Warrant Shares after such adjustment, a brief statement of the facts requiring such adjustment and the computation by which such adjustment was made. 6.3 In the event that at any time prior to the expiration of the Warrant and prior to its exercise: (a) the Company shall declare any distribution (other than a cash dividend or a dividend payable in securities of the Company with respect to the Common Stock); or (b) the Company shall offer for subscription to the holders of the Common Stock any additional shares of stock of any class or any other securities convertible into Common Stock or any rights to subscribe thereto; or (c) the Company shall declare any stock split, stock dividend, subdivision, combination, or similar distribution with respect to the Common Stock, regardless of the effect of any such event on the outstanding number of shares of Common Stock; or - 4 - (d) the Company shall declare a dividend, other than a dividend payable in shares of the Company's own Common Stock; or (e) there shall be any capital change in the Company as set forth in Section 6.1(b); or (f) there shall be a voluntary or involuntary dissolution, liquidation, or winding up of the Company (other than in connection with a consolidation, merger, or sale of all or substantially all of its property, assets and business as an entity); (each such event hereinafter being referred to as a "Notification Event"), the Company shall cause to be mailed to the Holder, not less than 20 days prior to the record date, if any, in connection with such Notification Event (provided, however, that if there is no record date, or if 20 days prior notice is impracticable, as soon as practicable) written notice specifying the nature of such event and the effective date of, or the date on which the books of the Company shall close or a record shall be taken with respect to, such event. Such notice shall also set forth facts indicating the effect of such action (to the extent such effect may be known at the date of such notice) on the Purchase Price and the kind and amount of the shares of stock or other securities or property deliverable upon exercise of the Warrant. 7. Conversion Rights ----------------- 7.1 In lieu of exercise of any portion of the Warrant as provided in Section 2.1 hereof, the Warrant represented by this Warrant Certificate (or any portion thereof) may, at the election of the Holder, be converted into the nearest whole number of shares of Common Stock equal to: (1) the product of (a) the number of Warrant Shares to be so converted and (b) the excess, if any, of (i) the Market Price per share with respect to the date of conversion over (ii) the purchase price per Warrant Share in effect on the business day next preceding the date of conversion, divided by (2) the Market Price per share with respect to the date of conversion. 7.2 The conversion rights provided under this Section 7 may be exercised in whole or in part and at any time and from time to time while any portion of the Warrant remains outstanding. In order to exercise the conversion privilege, the Holder shall surrender to the Company, at its offices, this Warrant Certificate accompanied by a duly completed Notice of Conversion in the form attached hereto as Exhibit B. The Warrant (or so much thereof as shall have been surrendered for conversion) shall be deemed to have been converted immediately prior to the close of business on the day of surrender of such Warrant Certificate for conversion in accordance with the foregoing provisions. As promptly as - 5 - practicable on or after the conversion date, the Company shall issue and shall deliver to the Holder (i) a certificate or certificates representing the number of shares of Common Stock to which the Holder shall be entitled as a result of the conversion, and (ii) if the Warrant Certificate is being converted in part only, a new certificate of like tenor and date for the balance of the unconverted portion of the Warrant Certificate. 7.3 "Market Price", as used with reference to any share of stock on any specified date, shall mean: (i) if such stock is listed and registered on any national securities exchange or traded on The Nasdaq Stock Market ("Nasdaq"), (A) the last reported sale price on such exchange or Nasdaq of such stock on the business day immediately preceding the specified date, or (B) if there shall have been no such reported sale price of such stock on the business day immediately preceding the specified date, the average of the last reported sale price on such exchange or on Nasdaq on (x) the day next preceding the specified date for which there was a reported sale price and (y) the day next succeeding the specified date for which there was a reported sale price; or (ii) if such stock is not at the time listed on any such exchange or traded on Nasdaq but is traded on the over-the-counter market as reported by the National Quotation Bureau or other comparable service, (A) the average of the closing bid and asked prices for such stock on the business day immediately preceding the specified date, or (B) if there shall have been no such reported bid and asked prices for such stock on the business day immediately preceding the specified date, the average of the last bid and asked prices on (x) the day next preceding the specified date for which such information is available and (y) the day next succeeding the specified date for which such information is available; or (iii) if clauses (i) and (ii) above are not applicable, the fair value per share of such stock as determined in good faith and on a reasonable basis by the Board of Directors of the Company and, if requested, set forth in a certificate delivered to the holder of this Warrant upon the conversion hereof. 8. Voluntary Adjustment by the Company ----------------------------------- The Company may, at its option, at any time during the term of the Warrant, reduce the then current Purchase Price to any amount deemed appropriate by the Board of Directors of the Company and/or extend the date of the expiration of the Warrant. - 6 - 9. Registration Rights ------------------- The Company has agreed with Allen & Company Incorporated that the Company will register for resale the Warrant Shares at the time the Company next files a registration statement with the United States Securities and Exchange Commission to register any of its securities. Notwithstanding the foregoing, Allen & Company Incorporated agrees that any certificate representing Warrant Shares will have a restrictive legend thereon stating that the Warrant Shares cannot be transferred except in compliance with the Securities Act of 1933, as amended, and any applicable state securities laws. 10. Governing Law ------------- This Warrant Certificate shall be governed by and construed in accordance with the laws of the State of New York. - 7 - IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed by its officers thereunto duly authorized and its corporate seal to be affixed hereon, as of this 25th day of November, 1997. CHAPARRAL RESOURCES, INC. By: --------------------------------------- Name: Title: [SEAL] Attest: - -------------------------------- Name: Title: - 8 - EXHIBIT A NOTICE OF EXERCISE The undersigned hereby irrevocably elects to exercise, pursuant to Section 2 of the Warrant Certificate accompanying this Notice of Exercise, _______ Warrants of the total number of Warrants owned by the undersigned pursuant to the accompanying Warrant Certificate, and herewith makes payment of the Purchase Price of such shares in full. ---------------------------------- Name of Holder ---------------------------------- Signature Address: ---------------------------------- ---------------------------------- ---------------------------------- - 9 - EXHIBIT B NOTICE OF CONVERSION The undersigned hereby irrevocably elects to convert, pursuant to Section 7 of the Warrant Certificate accompanying this Notice of Conversion, _______ Warrants of the total number of Warrants owned by the undersigned pursuant to the accompanying Warrant Certificate into shares of the Common Stock of the Company (the "Shares"). The number of Shares to be received by the undersigned shall be calculated in accordance with the provisions of Section 7.1 of the accompanying Warrant Certificate. ---------------------------------- Name of Holder ---------------------------------- Signature Address: ---------------------------------- ---------------------------------- ---------------------------------- - 10 - -----END PRIVACY-ENHANCED MESSAGE-----