On March 20, Imperial Petroleum Inc. (IMPP) announced the pricing of an upsized public offering worth $60 million. Consequently, IMPP nosedived in the premarket on Monday. At the time of writing, the stock was trading at a price of $1.37 per share in the premarket.
In the previous regular trading session, the stock remained in the green with a slight gain of 1.94%. IMPP fluctuate between a high of %2.83 and a low of $2.25 during the session. IMPP closed the session at a value of $2.37 per share while 40.14 million shares exchanged hands. Following the announcement, at the time of writing the stock had plunged down in the premarket to lose 42.19%.
The international seaborne transportations services provider, Imperial Petroleum Inc. was incorporated in 2021. Currently, the company’s 21.24 million outstanding shares trade at a market capitalization of $50.33 million. Standing at a year-to-date gain of 10.75%, the stock added a humungous 383.08% last month. Moreover, in the past five days, the stock has subtracted a value of 31.10%.
IMPP’s Latest Offering
Yesterday, the company announced the pricing of its 37,500,000 units at $1.60 per unit in an upsized underwritten public offering. Each of the units is composed of a common share (or pre-funded warrant) and a Class B warrant for purchasing a common share. Furthermore, the common share and warrant are immediately separable upon issuance. The Class B warrants have an exercise price of $1.60 per share with five years expiry. The expected gross proceeds from the offering are $60 million before discounts, expenses, and commissions.
IMPP plans to use the net proceeds from the offering for capital expenditures like acquisitions of vessels along with general corporate purposes. Further on, the offering is expected to close somewhere near March 23, 2022.
Additionally, the sole book-running manager for the offering towards the company is Maxim Group LLC.
Other Company News
On March 15, the company declared a dividend of $0.546875 per share on its Series A Cumulative Redeemable Perpetual Preferred Stock. The dividend has a record date of March 25, 2022, and is payable on March 30, 2022. Trading under the ticker “IMPPP”, the company had 795,878 Series A Preferred Shares outstanding as of the announcement date.
In addition, the dividend payment is for the period from December 30, 2021 (last dividend) through March 29, 2022.
Conclusion
IMPP stock had been in a downtrend since the company announced its Preferred stock dividends on March 15. While the stock was posing for a comeback on Friday, it took a further downward hit after the company announced a public offering.
