Item 1.01Item 1.01 - Entry into Material Agreement
Item
1.01 Entry into a Material Definitive Agreement.
JV
Entity Operating Agreement
On
July 1, 2026, Range Sky View Land, LLC (“Range Sky”), a wholly owned indirect subsidiary of Range Impact, Inc.
(the “Company”) and Time Complexity WV, LLC, a West Virginia limited liability company (“ Time Complexity WV ”),
entered into an Operating Agreement (the “ Operating Agreement ”) to form Time Complexity Appalachia, LLC, a
West Virginia limited liability company (the “ JV Entity ”). Pursuant to the Operating Agreement, Range
Sky and Time Complexity WV each own a fifty percent (50%) membership interest in the JV Entity. The JV Entity, directly or through
one or more special purpose subsidiaries, intends to develop a power generation and data center facility at the Fola mine site in West
Virginia (the “Project” ).
Pursuant
to the Operating Agreement, the
JV Entity is managed by
a three-person Board
of Managers (the “Board of Managers” ). Range Sky and Time Complexity
WV are each entitled to appoint one manager, and
the third manager is appointed
by mutual agreement of Range Sky and Time Complexity WV. Except
as otherwise provided in the Operating Agreement, actions of the Board of Managers require the
approval of a majority of the managers then in office. Certain specified matters require the
unanimous approval of all managers. In addition, certain fundamental actions -- including
the commencement of bankruptcy
or dissolution proceedings, the sale of all or substantially
all of the JV Entity’s assets or business,
and amendments to the Operating Agreement -- require
the unanimous consent of the Board of Managers and the members of
the JV Entity at
the time of such amendment. Distributions,
if any, shall be
made to members on a pro
rata basis in
accordance with their respective membership interests. The
Operating Agreement does not require members to make any initial cash capital contributions to the JV Entity. Any future capital
requirements of the JV Entity may be funded through loans made by the members, on such terms as may be agreed upon from time to time
in accordance with the Operating Agreement. Any
such loans shall be
secured by the assets of the JV Entity and will rank pari passu, with each lending member entitled
to its pro rata share
of the collateral and repayment proceeds.
The
Operating Agreement contains other terms, covenants, representations and warranties that are customary for a transaction
of this nature.
The
foregoing description of the Operating Agreement does not purport to be complete and is qualified in its entirety by reference to the
full text of the form of the Operating Agreement attached hereto as Exhibit 10.1.
Warrant
On July
1, 2026, in connection with the transactions
referenced in this Current Report, the Company issued a Common Stock Purchase Warrant ( “Warrant” ) to Time
Complexity WV pursuant to which Time Complexity WV, upon the terms and subject to the limitations on exercise and the conditions set
forth therein, is entitled to purchase up to 14,500,000 shares
of the Company’s common stock. The Warrant has a seven-year term. One-third of the Warrant
shall vest upon the occurrence of each
one of the following three
(3) milestones: (i)
the public announcement by the State of West Virginia of its support for the Project; (ii) the receipt by the JV Entity of a written
report prepared by an independent party confirming that the Project is technically and commercially feasible; and (iii) the
execution by the JV Entity (or any of its subsidiaries) of one or more binding agreements relating to the Project, including,
without limitation, agreements with respect to engineering, development, financing, construction, operations, power supply, compute
infrastructure, data center tenancy, or other commercialization (the “ Commercialization Milestone ”), in
each case as more particularly described in
the Warrant. If the Commercialization Milestone is
achieved prior to the other milestones, the Warrant will vest in full. Time Complexity WV will have 120 days to exercise the vested
Warrant following achievement of the applicable milestone(s). The exercise price per share of
common stock under the Warrant is $0.40, subject to adjustments for stock dividends, splits, and other combinations. The
Warrant and any underlying
Warrant Shares that have not yet vested shall automatically fully vest
upon the consummation of a Fundamental Transaction (as defined in the Warrant) or in the event
of the liquidation, dissolution, or winding
up of the Company during the Warrant’s term.
In addition to the above terms, the Warrant
also contains customary representations, warranties, and covenants for a transaction of this nature.
The
foregoing description of the Warrant does not purport to be complete and is qualified in its entirety by reference to the full text of
the form of the Warrant attached hereto as Exhibit 10.2.
Option
to Lease Agreement
On
July 1, 2026, in connection with the foregoing transactions, Range Sky entered into an Option to Lease Agreement with the JV Entity
(the “Option Agreement” ) which includes as an exhibit a form Ground Lease Agreement (the “Lease” ).
Pursuant
to the Option Agreement, Range Sky has granted the JV Entity, for nominal consideration, an option to lease certain real property
located in West Virginia for a term of five (5) years (the “Option Period”). The Option Period may be
extended for an additional one (1) year period if the JV Entity is diligently pursuing the Project using good faith commercially
reasonable efforts. The JV Entity may exercise the option by delivering written notice to Range Sky during the Option Period (the
“Exercise Notice”) which notice shall include the following: (i) a detailed description and property
map of the property that the JV Entity desires to lease (the “Leased Premises”) with reasonable
specificity, (ii) the JV Entity’s intended use of the Leased Premises, and (iii) the name of any third-party user of
the Leased Premises and the agreed upon terms for the use thereof (which may be in the form of a memorandum of understanding, letter
of intent, term sheet, or similar document) with reasonably sufficient detail ((i) - (iii) collectively, “Lease
Conditions”). Range Sky shall have no obligation to enter into a Lease with the JV Entity after receiving an Exercise
Notice until the Lease Conditions have been satisfied in Range Sky’s sole discretion. The option is non-transferable, except
in connection with a transaction involving the sale of all or substantially all of the JV Entity’s assets to any third-party
entity or to any third-party entity into which the JV Entity may be merged or combined where the JV Entity is not the surviving entity.
The Lease will provide for nominal
annual rent on a triple net basis, pursuant to which the JV Entity will be responsible for all costs and expenses relating to the Leased Premises including, without limitation, real estate taxes, insurance, maintenance, development, and construction. The Leased Premises
will be delivered and accepted on an “as is” basis.
The initial term of the Lease will
be twenty (20) years, with four (4) successive renewal options of five (5) years each. Subject to the satisfaction of specified conditions,
including the procurement of financing and the JV Entity’s readiness to commence construction of the Project, the JV Entity will
have an option to purchase the Leased Premises at a price of $10,000 per acre. Range Sky will retain approval rights with respect to
construction plans.
The
JV Entity will be prohibited from assigning the Lease or subletting the Leased Premises, except in connection with a transaction
involving the sale of all or substantially all of its assets. The Lease will also include customary protections for mortgage
lenders, including cure rights and certain rights in connection with termination of the Lease following a default by the JV
Entity.
The
foregoing descriptions of
the Option Agreement and Lease do not purport to be complete and are qualified in their entirety by reference to the full text of the form of the Option
Agreement attached hereto as Exhibit 10.3.
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.
On
July 1, 2026, the Company issued Time
Complexity WV a warrant to purchase up to 14,500,000
shares of the Company’s common stock. The Warrant has a seven-year term. One-third of the
Warrant shall vest upon the occurrence of each of the following three (3) milestones: (i) the public announcement by the State of
West Virginia of its support for the Project; (ii) the JV Entity obtaining a written report from an independent party confirming
that the Project is technically and commercially feasible; and (iii) the execution by the JV Entity (or any of its subsidiaries) of
one or more binding agreements relating to the Project, including, without limitation, agreements with respect to engineering,
development, financing, construction, operations, power supply, compute infrastructure, data center tenancy, or other
commercialization (the “ Commercialization Milestone ”), in each case as more particularly described in the
Warrant. If the Commercialization Milestone is achieved prior to the other
milestones, the Warrant will vest in full. Time Complexity WV will have 120 days to exercise the vested Warrant following
achievement of the applicable milestone(s). The exercise price per share of common stock under
the Warrant is $0.40, subject to adjustments for stock dividends, splits, and other combinations. The Warrant and any
underlying Warrant Shares that have not yet vested shall automatically fully vest upon
the consummation of a Fundamental Transaction (as defined in the Warrant) or in the event
of the liquidation, dissolution, or winding up of the Company during the Warrant’s
term.
The
issuance of the Warrant is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities
Act” ) as a transaction by an issuer not involving a public offering under Section 4(a)(2) of the Securities Act and under
Rule 506 of Regulation D promulgated under the Securities Act ( “Regulation D” ). The Company made this determination
based on the representations of Time Complexity WV in the Warrant, including, but not limited to, Time Complexity WV’s representation
that it is an “accredited investor” within the meaning of Rule 501 of Regulation D and that it had access to full and complete
information about the Company and its investment.