Brad Jacobs' JPE to invest $1B in CKX Lands; Jacobs to become chairman and CEO, $20.8M dividend declared

CKX LANDS, INC.

• $900M from Jacobs Private Equity II and $100M from co-investors led by HRTG Partners (formerly Sequoia Heritage); JPE to hold a majority stake.
• Investors get voting convertible perpetual preferred for ~219M shares at $4.57 (pre-split $1.09) plus warrants on ~219M more at $4.57 (50%), $6.85 (25%) and $13.70 (25%).
• Post-close JPE and co-investors would own ~99.78% of common stock on a fully convertible basis, before warrant exercise.
• CKX to pay a $20.8M cash dividend, $10.1312 per share, to holders of record shortly before closing, funded by investment proceeds and cash on hand.
• Requires Louisiana-to-Delaware conversion, holding company reorganization, a 4.1744380:1 reverse split and stockholder approval; holders of ~28% signed voting agreements; closing expected early 2027.