Business Context and Reporting Period
Company: Creek Road Miners, Inc. (Note: Metadata referenced "Prairie Operating Co.", but the filing identifies Creek Road Miners, Inc.)
Filing Type: Form 8-K (Current Report)
Date of Report: September 15, 2021
Event: Entry into a Material Definitive Agreement and Disposition of Assets.
Key Financial Metrics
This filing reports a specific transaction rather than periodic financial performance. The filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity for the reporting period.
- Transaction Consideration: $1,500,000.00 received for the sale of assets.
- Asset Sold: 100% of membership interests in Jevo Holdings, LLC (a wholly owned subsidiary).
Material Changes
The Company disposed of its wholly owned subsidiary, Jevo Holdings, LLC, which owned patent-protected automated gelatin shot makers ("Jevo Units") and related manufacturing and marketing rights. This represents a strategic shift to divest non-core assets.
Guidance, Outlook, and Management Commentary
Strategic Rationale: Management stated the sale was executed to allow the Company to "more fully focus on cryptocurrency mining operations."
Related Party Transaction: The Purchaser, JCE Investments, LLC, is managed by the son-in-law of one of the Company's directors and majority shareholders. The transaction was approved by the four unrelated board members following arms-length negotiations.
Risks and Contingencies: The filing does not explicitly list new risks or contingencies beyond the standard disclosure that the summary is qualified by the full agreement filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the closing of the $1,500,000 transaction and the receipt of funds.
- Confirm the Company's current operational focus on cryptocurrency mining post-divestiture.
- Review the full Membership Interest Purchase Agreement (Exhibit 10.1) for any retained liabilities or earn-out provisions.
- Assess the impact of the related-party nature of the transaction on future governance.