On October 13, 2021, DG Capital Management, LLC raised preliminary objections to the October 8, 2021 offer of Ergon, Inc. to acquire the common units of Blueknight Energy Partners, L.P. at a cash purchase price of $3.32 per unit, and preferred units at a cash purchase price of $8.46 per unit. DG Capital believes that the proposed offer is not in the best interests of the Company?s common unit holders, materially undervalues the Company?s common units, and improperly seeks to shift value to preferred unit holders. Moreover, there are overlapping conflicts of interest and self-dealing concerns here, with Ergon controlling the Board, a wholly owned Ergon entity serving as the general partner of the Company, and, as Ergon conceding in its October 8 offer letter, Ergon owning a majority of the Company?s preferred units.