EnerJex Resources to skip November dividend on 10% series A preferreds

By Marisa Wong

Morgantown, W.Va., Nov. 4 – EnerJex Resources, Inc. said it will not declare the monthly dividend for the month of November on its 10% series A cumulative redeemable perpetual preferred stock in order to preserve its cash resources.

Payment of future dividends on the series A preferreds will be determined by the company’s board of directors, according to a press release.

Under the terms of the preferreds, the dividend for November, and any future unpaid dividends, will accumulate. If the company does not pay dividends on preferreds for six monthly periods (whether consecutive or non-consecutive), the dividend rate will increase to 12% per year and the holders of the preferreds will have the right, at the next meeting of stockholders, to elect two directors to be on the company’s board of directors along with other members of the board until all accumulated accrued and unpaid dividends are paid in full.

The series A preferreds were first issued in June 2014 and trade on the NYSE MKT under the symbol “ENRJ.PR.”

EnerJex is an independent oil and natural gas exploration and production company base in San Antonio.

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