- Imperial Petroleum (NASDAQ:IMPP) stock is dropping alongside a secondary share offering.
- The offering prices 72,727,272 units at 55 cents each.
- The company expects gross proceeds of $40 million from the offering.
Imperial Petroleum (NASDAQ:IMPP) stock is taking a beating on Tuesday after announcing a secondary offering for its shares.
According to a press release from Imperial Petroleum, this secondary offering will price shares at 55 cents. It also includes 72,727,272 units with each one containing a share and a warrant to purchase an additional share.
Imperial Petroleum is expecting to generate gross proceeds of $40 million from the offering. It plans to use this on “capital expenditures.” This could include the purchase of “vessels in seaborne transportation sectors other than the product and crude tanker sectors.” It will also use the money for general purposes.
Imperial Petroleum notes that each Class C warrant is immediately exercisable for a price of 55 cents. The warrants expire five years after issuance and the offering is expected to close this Thursday.
Maxim Group is acting as the sole book-running manager of the offering. Imperial Petroleum is granting the underwriter the ability to purchase an additional 10,909,090 shares or warrants within a 45-day period.
IMPP stock is taking a massive beating with today’s news. It’s worth mentioning that this follows a rally yesterday on heavy trading and increased oil prices. That heavy trading continues today with some 143 million shares on the move as of this writing. The company’s daily average trading volume is about 47 million shares.
IMPP stock is down 36.5% as of Tuesday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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