Hammerhead Energy (NASDAQ:HHRS), which combined with Decarbonization Plus IV earlier this year, announced this morning that it will redeem all outstanding public warrants for $0.10 per warrant.

Holders will have the option of exercising each warrant for $11.50 per share or do so on a cashless basis. Holders opting for the latter will receive a number of shares per warrant based on the redemption date and Hammerhead’s last reported sale price during the 10 trading days immediately following the date that the notice of redemption is sent out to shareholders.

The ratio of shares provided to warrant holders who opt to exercise them on a cashless basis will be capped at a maximum of 0.361 per warrant. Any fractional remains after such exchanges will be rounded down to the nearest whole share.

Hammerhead warrant holders will have until 5 pm ET, September 15 to make their exercise decisions, after which all unexercised warrants will be voided with holders only entitled to receive the redemption price per warrant.

The company has the right to call the remaining warrants in this way because its shares reached above $10 as of the last market close, having crept up from a low at $6.75 on June 28. Hammerhead continues to swim upward in the pre-market, reaching +7.3% higher to $11.12 by about an hour before the opening bell.

Hammerhead warrants (NASDAQ:HHRSW), meanwhile are up about +2.8% to $2.18 at about the same time.

In June, the de-SPAC raised about $12.8 million from calling 12,852,235 warrants for $1 per warrant, eliminating about 45% of its total overhang.

Decarbonization Plus IV initially announced its $1 billion deal with Hammerhead Resources in September 2022 and completed it in February 2023. The Calgary, Canada-based company produces natural gas and oil from the Montney basin.

According to its latest corporate presentation, it produced about 39.5 thousand barrels of oil equivalent per day (Mboe/d) through the first half of 2023, up from 32.1 Mboe/d in full year 2022.