Ring Energy, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 9 – STOCKHOLDERS’ EQUITY

The Company is authorized to issue 150,000,000 common shares, with a par value of $0.001 per share and 50,000,000 shares of Preferred Stock.

Common Stock Issued in Public Offering

– In April 2016, the Company closed on an underwritten public offering of 11,500,000 shares of its common stock, including 1,500,000 shares sold pursuant to the full exercise of an over-allotment option, at $5.60 per share for gross proceeds of $64,400,000. Total net proceeds from the offering were $61,063,497, after deducting underwriting commissions and offering expenses payable by the Company of $3,336,503.

In December 2016, the Company closed on an underwritten public offering of 7,195,387 shares of its common stock, including 670,387 shares sold pursuant to the partial exercise of an over-allotment option, at $11.50 per share for gross proceeds of $82,746,951. Total net proceeds from the offering were $78,485,787, after deducting underwriting commissions and offering expenses payable by the Company of $4,261,164.

In July 2017, the Company closed on an underwritten public offering of 4,977,658 shares of its common stock, including 477,658 shares sold pursuant to the partial exercise of an over-allotment option, at $12.50 per share for gross proceeds of $62,220,725. Total net proceeds from the offering were $59,026,956, after deducting underwriting commissions and offering expenses payable by the Company of $3,193,769.

In February 2018, the Company closed on an underwritten public offering of 6,164,000 shares of its common stock, including 804,000 shares sold pursuant to the full exercise of an over-allotment option, at $14.00 per share for gross proceeds of $86,296,000. Total net proceeds from the offering were $81,821,138, after deducting underwriting commissions and offering expenses payable by the Company of $4,474,862.

Common stock issued in property acquisition –

As discussed in Note 3, in December 2018, the Company issued 2,623,948 shares of common stock as consideration for the acquisition of oil and natural gas properties. These shares were valued at $5.80 per share for an aggregate of $11,204,258.

Common Stock Issued for option exercises

– During the years ended December 31, 2016, 2017 and 2018, the Company issued 25,734, 133,308 and 153,113 shares of common stock as a result of option exercises, respectively. The following tables present the details of those exercises:

	Options		Exercise		Shares		Shares		Cash paid at		Stock price on date of exercise		Aggregate value of shares retained
	exercised		price ($)		issued		retained		exercise ($)		($)		($)
2016		5,000	$	4.50		5,000		-	$	22,500	$	4.72	$	-
		20,000		4.50		20,000		-		90,000		7.29		-
		150		2.00		119		31		-		9.72		300
		350		2.00		276		74		-		9.46		700
		400		2.00		339		61		-		13.05		800

2016 Totals		25,900				25,734		166	$	112,500			$	1,800
2016 Weighted Averages			$	4.41							$	6.93

											Stock price on		Aggregate value
	Options		Exercise		Shares		Shares		Cash paid at		date of exercise		of shares retained
	exercised		price ($)		issued		retained		exercise ($)		($)		($)
2017		4,100	$	2.00		3,491		609	$	-	$	13.47	$	8,200
		60,000		2.00		50,156		9,844		-		12.19		120,000
		200		8.00		116		84		-		13.75		1,600
		1,500		10.89		1,188		312		-		13.75		16,335
		600		5.25		229		371		-		13.75		3,150
		20,000		5.50		11,953		8,047		-		13.67		110,000
		2,000		8.00		830		1,170		-		13.67		16,000
		2,000		5.25		1,232		768		-		13.67		10,500
		15,000		2.00		12,875		2,125		-		14.12		30,000
		60,000		2.00		51,238		8,762		-		13.70		120,000

2017 Totals		165,400				133,308		32,092	$	-			$	435,785
2017 Weighted Averages			$	2.63							$	13.18

											Stock price on		Aggregate value
	Options		Exercise		Shares		Shares		Cash paid at		date of exercise		of shares retained
	exercised		price ($)		issued		retained		exercise ($)		($)		($)
2018		110,000	$	2.00		90,375		19,625	$	-	$	11.21	$	220,000
		50,000		2.00		50,000		-		100,000		8.00		-
		25,000		7.50		9,829		15,171		-		12.36	$	187,500
		3,000		8.00		1,059		1,941		-		12.36	$	24,000
		3,000		5.25		1,750		1,250		-		12.36	$	15,750
		2,000		11.75		100		1,900		-		12.36	$	23,500

2018 Totals		193,000				153,113		39,887	$	100,000			$	470,750
2018 Weighted Averages			$	2.96							$	10.58