Item 1.01Item 1.01 - Entry into Material Agreement
Item
1.01 Entry into a Material Definitive Agreement.
Stock
Purchase Agreement
On
May 31, 2026 (the “Effective Date”), the Company and Tacora Capital, LP, a Delaware limited liability company (“Tacora
Capital”) entered into a Stock Purchase Agreement (“Purchase Agreement”) pursuant to which Tacora Capital agreed to
purchase up to Ten Million Dollars ($10,000,000) of the Company’s common stock in twelve consecutive monthly installments commencing
on the Effective Date based on a volume weighted average price.
The
Purchase Agreement contains the customary representations, warranties, indemnification rights and obligations of the parties in
agreements of this type, including that the Company will use commercially reasonable efforts to file a registration statement on
Form S-1 under the Securities Act of 1933, as amended (the “Securities Act”), to register the Shares as soon as
reasonably practicable, but in any event no later than the sixth-month anniversary of the Twelfth Closing Date (as defined in the Purchase Agreement). The Company is not
obligated to cause the Registration Statement to be declared effective by any specific date, and any time periods for effectiveness
shall be subject to the Company’s compliance with applicable law and the rules and guidance of the Securities and Exchange
Commission.
The foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the
full text of the form of the Purchase Agreement attached hereto as Exhibit 10.1.
Loan
Agreement
On
May 31, 2026, Range Cumberland, LLC, a wholly owned indirect subsidiary of the Company (“Range Cumberland”), and Cumberland
Coal Corp. (the “Borrower”) entered into a Loan Agreement (“Loan Agreement”) pursuant to which Range Cumberland
agreed to make advances of up to Four Million Dollars ($4,000,000) (the “Loan”) to the Borrower pursuant to Draw Notes, a
form of which is attached as an exhibit to the Loan Agreement. The Loan is secured by certain collateral provided by the Borrower pursuant
to the Security Agreement attached as an exhibit to the Loan Agreement (the “Range Cumberland Security Interest”), and bears
interest at a fixed rate of 10% per annum with quarterly interest-only payments. On written notice to Range Cumberland at least ten days
prior to the date any interest payment is due, Borrower may elect that any accrued and unpaid interest on the outstanding principal balance
of a Draw Note not be payable and to have such interest capitalized and added to the outstanding principal balance of such note. Principal
and all accrued and unpaid interest is due the earlier of May 31, 2031 or upon acceleration of the Note upon an Event of Default as defined
in the Loan Agreement.
The
Loan Agreement contains the customary representations, warranties, covenants, indemnification rights as well as other terms typical for
agreements of this nature.
The
foregoing description of the Loan Agreement does not purport to be complete and is qualified in its entirety by reference to the full
text of the form of the Loan Agreement and the attached Form Draw Note and Security Agreement attached hereto as Exhibit 10.2.
Subordination
Agreement
On
May 31, 2026, in connection with the Loan Agreement and a certain Contingent Performance Note, dated as of May 31, 2026 (the “Senior
Note”), issued by CCH, the Series, Cumberland Coal Corp, jointly and severally (collectively, the “Senior Note Borrowers”),
in the principal amount of $25 Million in favor of Tacora Capital (the “Senior Indebtedness”), Range Cumberland entered into
a Subordination Agreement with Tacora Capital and Cumberland Coal Corp. (the “Subordination Agreement”) pursuant to which
Range Cumberland (the “Subordinated Creditor”) agreed to (i) subordinate the indebtedness of Cumberland Coal Corp. as evidenced
by the Loan Agreement referenced above (“Subordinated Indebtedness”) to the Senior Indebtedness according to the terms and
conditions of the Subordination Agreement and (ii) subordinate the Range Cumberland Security Interest granted under the Security Agreement
entered into in connection with the Loan referenced above to all of the rights of Tacora Capital to payment under the Senior Note. Under
the terms of the Subordination Agreement, Range Cumberland has agreed that, until the Senior Indebtedness has been paid in full, (i)
no payments of principal, interest, or other amounts in respect of the Subordinated Indebtedness may be received by Range Cumberland
prior to the payment in full of all of the Senior Indebtedness and (ii) all collateral described in the Security Agreement shall be subordinated
and made junior and inferior in all respects to the rights of Tacora Capital to receive payment of the Senior Indebtedness in full, regardless
of whether such rights are unsecured.
In addition to the above provisions, the
Subordination Agreement contains customary representations, warranties, covenants, and indemnification provisions, as well as other terms
typical for agreements of this nature.
The
foregoing description of the Subordination Agreement does not purport to be complete and is qualified in its entirety by reference to
the full text of the Subordination Agreement, a copy of which the Company is attached hereto as Exhibit 10.3.
Range Bluegrass Letter Agreement
On May 31, 2026, Range Bluegrass Land, LLC (“Range
Bluegrass”), a wholly-owned indirect subsidiary of Range Impact, Inc. (the “Company”) entered into a letter agreement
(the “Letter Agreement”) with Tacora Capital, LP, a Delaware limited liability company (“Tacora Capital”) pursuant
to which Range Bluegrass and Tacora Capital have agreed to work in good faith towards the creation of a joint venture arrangement with
respect to monetization of certain unpermitted mineral reserve property located at the Premier Elkhorn mine complex in Kentucky owned
by Range Bluegrass (the “New Frontier Mineral Reserves”). The parties further acknowledged that they were entering into the
Letter Agreement in connection with: (i) Tacora Capital’s agreement to purchase Ten Million Dollars ($10,000,000) of the Company’s
common stock; (ii) Tacora Capital’s sale of all of its equity in Cumberland Coal Investments, LLC, a Delaware limited liability
company (“CCI”), and certain affiliated limited liability companies (collectively, “Series”), which own 100%
of the common stock of Cumberland Coal Corporation, a surface and underground mining operator with locations in Kentucky and Virgina
(“Cumberland Coal Corp.”) to Cumberland Coal Holdings, LLC, an Ohio limited liability company (“CCH”), pursuant
to a Membership Interest Transfer Agreement; and (iii) an agreement by Range Cumberland, LLC, a wholly-owned indirect subsidiary of the
Company, agreed to lend Cumberland Coal Corporation up to Four Million Dollars ($4,000,000) in connection with the reclamation and remediation
of the New Frontier Mineral Reserves. None of CCI, the Series, Cumberland Coal Corp., or CCH are affiliated with the Company or any of
its subsidiaries.
The Letter Agreement contains the customary
provisions found in agreements of this type. The foregoing description of the Letter Agreement does not purport to be complete and is
qualified in its entirety by reference to the full text of the form of the Purchase Agreement attached hereto as Exhibit 10.4.
Item 2.03Item 2.03 - Creation of Direct Financial Obligation
Item
2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
On
May 31, 2026, Range Bluegrass Land, LLC (“Range Bluegrass”), a wholly owned subsidiary of the Company, became subject to
a contingent obligation in connection with a Contingent Performance Note (the “Note”) issued in favor of Tacora Capital,
LP (“Tacora Capital”) by certain third-party obligors, including Cumberland Coal Holdings, LLC, Cumberland Coal Investments,
LLC, certain affiliated series entities, and Cumberland Coal Corporation (collectively, the “Obligors”). The Note provides
for aggregate contingent payments to Tacora Capital of up to $25,000,000, payable from the net proceeds of certain sale transactions
involving the Obligors’ assets or equity.
Pursuant
to Section 6.2 of the Note, Range Bluegrass agreed to certain contingent obligations with respect to any deficiency remaining under the
Note after the completion of specified sale transactions by the Obligors (a “Contingent Performance Note Deficiency”). If a sale transaction results in a Contingent Performance Note Deficiency, Range Bluegrass and Tacora Capital agreed
to work in good faith to enter into a joint venture with respect to maximizing the value of the New Frontier Mineral Reserves (as defined
in the Letter Agreement referenced above in Item 1.01 and attached hereto as Exhibit 10.4), known as the “Investment Recovery Opportunity.”
No other real or personal property of Range Bluegrass is included in the Investment Recovery Opportunity.
The
Company was not a direct obligor under the Note. However, because Range Bluegrass is a wholly owned subsidiary of the Company, the
Company may be indirectly exposed to financial obligations arising from Range Bluegrass’s contingent commitments under the
Note with respect to the Investment Recovery Opportunity.
The
contingent obligation is not fixed and will arise, if at all, only upon the occurrence of future events, including (i) the
consummation of certain sale transactions by the Obligors and (ii) a resulting shortfall in payments under the Note. Accordingly,
the amount and timing of any potential payments by a newly created joint venture between Range Bluegrass and Tacora, whose sole asset would be the New Frontier Mineral Reserves, cannot be determined at this time.
The
foregoing description of the Note and the obligations contemplated by Section 6.2 does not purport to be complete and is qualified
in its entirety by reference to the full text of the Contingent Performance Note, which is filed as an exhibit hereto as Exhibit
10.5 and incorporated herein by reference.
Item
3.02. Unregistered Sales of Equity Securities.
The
information set forth in Item 1.01 above is hereby incorporated by reference into this Item 3.02 in its entirety.
Pursuant
to the Purchase Agreement, the Company issued 6,256,704 shares of the Company’s common stock to Tacora Capital on
May 31, 2026. The sale of the Shares was exempt from the registration requirements of the Securities Act as transactions by an
issuer not involved in any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated under
the Securities Act (“Regulation D”). The Company made this determination based on the representations of the Purchaser in
the Purchase Agreement, including, but not limited to, that it is an “accredited investor” within the meaning of Rule 501
of Regulation D and that Purchaser had access to full and complete information about the Company and its investment.