Warrants

Important Tax Information

Pursuant to the warrant agreements, distributions to the common stockholders may result in an adjustment to the exercise price and the conversion ratio of each warrant class. Expand Energy expects that such adjustments will be treated under Internal Revenue Code Section 305(c) as deemed distributions for U.S. federal income tax purposes. Any deemed distributions will be taxed and reported to the Internal Revenue Service in the same manner as actual distributions on stock and thus could be taxable as dividends (in whole or in part), despite the absence of any actual payment of cash or property to the warrant holder. For a non-U.S. holder of warrants, any such deemed dividends may be subject to U.S. federal withholding tax. Each holder of warrants should consult their own tax advisor concerning the tax consequences of any deemed distributions.  

IRS Form 8937s which describe the deemed dividend arising from each warrant adjustment are posted under Tax Documents.