Imperial Petroleum Inc. Announces Reverse Stock Split
April 26 2023 - 8:30AM
Imperial Petroleum Inc. (the “Company”) (Nasdaq: IMPP) today
announced that its board of directors has determined to effect a
one-for-fifteen (1-for-15) reverse stock split of the Company’s
common stock, par value $0.01 per share.
The reverse stock split will take effect, and the Company’s
common stock will begin trading on a split-adjusted basis on The
Nasdaq Capital Market as of the opening of trading on April 28,
2023. The CUSIP number of Y3894J187 will be assigned to the
Company’s common stock when the reverse stock split becomes
effective.
When the reverse stock split becomes effective, every fifteen
(15) of the Company’s issued shares of common stock will be
combined into one issued share of common stock, without any change
to the par value per share. This will reduce the number of
outstanding shares of common stock from approximately 248.1 million
shares to approximately 16.5 million shares. The Company’s
outstanding warrants will be proportionately adjusted to increase
the exercise price and reduce the number of shares issuable upon
exercise.
No fractional shares will be issued in connection with the
reverse stock split. Stockholders who would otherwise hold a
fraction of a share of common stock of the Company will receive a
cash payment in lieu thereof at a price equal to that fraction of a
share to which the stockholder would otherwise be entitled,
multiplied by the closing price of the Company’s common stock on
Nasdaq on April 27, 2023.
The reverse stock split will affect all holders of common stock
uniformly and will not affect any shareholder’s percentage
ownership interest in the Company, except as a result of the
treatment of fractional shares. Neither will the reverse stock
split have any direct impact on the market capitalization of the
Company, nor modify any voting rights or other terms of the common
stock.
Stockholders with shares held in book-entry form or through a
bank, broker, or other nominee are not required to take any action
and will see the consequence of the reverse stock split reflected
in their accounts on or after April 28, 2023. Such beneficial
holders may contact their bank, broker, or nominee for more
information.
The reverse stock split ratio approved by the board of directors
is within the, previously disclosed, range of ratios for a reverse
stock split authorized by the stockholders of the Company, within
three years of the spin-out of the Company.
On June 17, 2022, the Company received notice from The Nasdaq
Stock Market (“Nasdaq”) that it was no longer in compliance with
Nasdaq’s continued listing standards because the average closing
share price of the Company’s common stock over a consecutive 30
trading-day period had fallen below the requirement to be at least
$1.00 per share, and on December 15, 2022 received a notice from
Nasdaq granting the Company until June 12, 2023 to regain
compliance with this requirement. The purpose of the reverse stock
split is to increase the market price of the Company’s common
stock. The Company believes that the reverse stock split will
increase the market price for its common stock and cure this
deficiency.
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking
statements within the meaning of the safe harbor provisions of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, including statements with respect
to the IMPERIAL PETROLEUM INC.’s ability to regain compliance with
Nasdaq’s continued listing standards and remain listed on Nasdaq or
other major stock exchange and other statements that are forward
looking. Forward-looking statements reflect our current views with
respect to future events and financial performance and may include
statements concerning plans, objectives, goals, strategies, future
events or performance, or impact or duration of
the COVID-19 pandemic and underlying assumptions and
other statements, which are other than statements of historical
facts. The forward-looking statements in this release are based
upon various assumptions. Although IMPERIAL PETROLEUM INC. believes
that these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, IMPERIAL PETROLEUM INC. cannot assure you that
it will achieve or accomplish these expectations, beliefs or
projections. Important factors that, in our view, could cause
actual results to differ materially from those discussed in the
forward-looking statements include risks discussed in our filings
with the SEC and the following: the impact of the COVID-19 pandemic
and efforts throughout the world to contain its spread, the
strength of world economies and currencies, general market
conditions, including changes in charter hire rates and vessel
values, charter counterparty performance, changes in demand that
may affect attitudes of time charterers to scheduled and
unscheduled drydockings, shipyard performance, changes in IMPERIAL
PETROLEUM INC.’s operating expenses, including bunker prices,
drydocking and insurance costs, ability to obtain financing and
comply with covenants in our financing arrangements, or actions
taken by regulatory authorities, potential liability from pending
or future litigation, domestic and international political
conditions, the conflict in Ukraine and related sanctions,
potential disruption of shipping routes due to accidents and
political events or acts by terrorists.
Risks and uncertainties are further described in reports filed
by IMPERIAL PETROLEUM INC. with the U.S. Securities and Exchange
Commission.
About IMPERIAL PETROLEUM INC.IMPERIAL
PETROLEUM INC. is a ship-owning company providing petroleum
products, crude oil and drybulk seaborne transportation services.
The Company owns a total of twelve vessels; five M.R. product
tankers, one Aframax oil tanker, two Suezmax tankers and four
Handysize dry bulk carriers with a total capacity of 808,000
deadweight tons (dwt). IMPERIAL PETROLEUM INC.’s shares of common
stock and 8.75% Series A Cumulative Redeemable Perpetual Preferred
Stock are listed on the Nasdaq Capital Market and trade under the
symbols “IMPP” and “IMPPP,” respectively.
For further information, please contact:
Company Contact:
Fenia
SakellarisIMPERIAL PETROLEUM
INC.E-mail: info@imperialpetro.com |
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