Page 11 of 17 – SEC Filing
(c) The
principal business of Specialty LP, Drawdown LP, Global LP is investing in securities. The principal business of Mudrick GP is
acting as the general partner of Specialty LP and Global LP. The principal business of Drawdown GP is acting as the general partner
of Drawdown LP. The principal business of MCM is acting as the investment manager to Specialty LP, Drawdown LP, Global LP and certain
separately managed accounts. The principal business of MCM GP is acting as the general partner of MCM. The principal occupation
of Mr. Mudrick is serving as the sole member of the Mudrick GP, Drawdown GP and MCM GP.
(d) No
Reporting Person has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) No
Reporting Person has, during the last five years, been party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations
of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to
such laws.
(f) Mr.
Mudrick is a citizen of the United States of America.
| Item 3. | Source and Amount of Funds or Other Consideration. |
As more fully described
in Item 6 hereof, in connection with the Issuer’s emergence from bankruptcy on July 15, 2016 (the “Effective Date”),
Specialty LP received 89,160 Shares and 6,086 warrants to purchase Shares in exchange for certain debt that it had owned pre-bankruptcy.
Drawdown LP received 148,340 Shares and 15,368 warrants to purchase Shares in exchange for certain debt that it had owned pre-bankruptcy.
Global LP received 1,060,215 Shares and 60,525 warrants to purchase Shares in exchange for certain debt that it had owned pre-bankruptcy.
Certain managed accounts to which MCM acts as investment manager received 630,153 Shares and 44,159 warrants to purchase Shares
in exchange for certain debt that they owned pre-bankruptcy.
Specialty LP has purchased
129,085 Shares with working capital in open market purchases. The aggregate purchase price of the 129,085 Shares purchased in the
open market by Specialty LP is approximately $628,954, excluding brokerage commissions.
Drawdown LP has purchased
579,130 Shares with working capital in open market purchases. The aggregate purchase price of the 579,130 Shares purchased in the
open market by Drawdown LP is approximately $3,174,573, excluding brokerage commissions.
Global LP has purchased
1,246,337 Shares with working capital in open market purchases. The aggregate purchase price of the 1,246,337 Shares purchased
in the open market by Global LP is approximately $5,939,225, excluding brokerage commissions.
MCM has purchased
1,209,853 Shares on behalf of certain managed accounts with working capital in open market purchases. The aggregate purchase price
of the 1,209,853 Shares purchased in the open market by MCM on behalf of certain managed accounts is approximately $6,173,465, excluding
brokerage commissions.
| Item 4. | Purpose of Transaction. |
Other than with respect
to the Shares and warrants that were issued to certain of the Reporting Persons as holders of debt when the Issuer emerged from
bankruptcy, which is further discussed in Items 3 and 6 hereof, the Reporting Persons purchased the Shares based on the Reporting
Persons’ belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity.
Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability
of Shares at prices that would make the purchase or sale of Shares desirable, the Reporting Persons may endeavor to increase or
decrease their position in the Issuer through, among other things, the purchase or sale of Shares on the open market or in private
transactions or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.
| 11 |
