Business Context and Reporting Period
This Form 8-K was filed by EnerJex Resources, Inc. on May 22, 2014. The filing reports the entry into a material definitive agreement, specifically the Seventh Amendment to the Company's Amended and Restated Credit Agreement with Texas Capital Bank, N.A.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, or liquidity figures. The primary financial metric disclosed is the authorization for the issuance of up to 850,000 shares of 10% Series A Cumulative Redeemable Perpetual Preferred Stock.
Material Changes
The material change reported is the execution of the Seventh Amendment to the Credit Agreement. Under this amendment, the Bank has consented to:
- The issuance of up to 850,000 shares of 10% Series A Cumulative Redeemable Perpetual Preferred Stock.
- The payment of dividends on these shares in accordance with their terms.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or specific risk factors beyond the standard disclosure that the description of the agreement is qualified by reference to the full text of the Seventh Amendment filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the specific terms of the 10% Series A Cumulative Redeemable Perpetual Preferred Stock by reviewing Exhibit 10.1.
- Confirm the impact of the dividend payments on the Company's cash flow and existing debt covenants.
- Review the full Seventh Amendment to understand any additional conditions or restrictions imposed by the Bank.