Imperial Petroleum Announces Agreement to Acquire Two Handysize Dry Bulk Carriers
February 20 2023 - 11:00AM
Imperial Petroleum Inc. (Nasdaq: IMPP) (the “Company”) announced
today that it has entered into agreements to acquire two handysize
drybulk carriers, built in Japan at Nakai Zosen in 2012 and at Shin
Kurushima Onishi in 2013 respectively, with an aggregate capacity
of approximately 71,000 dwt, from entities affiliated with our
Chief Executive Officer, for aggregate cash consideration of $25.5
million and 13,875 shares of Series C Cumulative Convertible
Perpetual Preferred Stock (the “Series C Convertible Preferred
Stock”). Delivery of the vessels on a charter-free basis, and
closing of the transactions, is expected by the end of March 2023.
The Series C Convertible Preferred Stock has a dividend rate of
5.00% per annum per $1,000 liquidation preference per share, which
is payable in cash or additional shares of Series C Convertible
Preferred Stock at the Company’s election, and is convertible, at
the holder’s option, after the six-month anniversary of issuance
into shares of the Company’s common stock at a conversion price
equal to the lower of $0.50 and the ten-day volume weighted average
price of the common stock. The transaction was approved by a
committee comprised of independent directors, which received a
fairness opinion from an independent financial advisor in
connection with the issuance of the Series C Convertible Preferred
Stock in the transaction.
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 two of which
will be delivered by end of March 2023. Following these deliveries,
the Company’s fleet will have a 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.
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking
statements. 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, many of which are based, in turn, upon
further assumptions, including without limitation, management’s
examination of historical operating trends, data contained in our
records and other data available from third parties. 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 completion of the acquisition, 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, 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.
Company Contact:
Fenia Sakellaris
IMPERIAL PETROLEUM INC.
00-30-210-6250-001
E-mail: fs@Imperialpetro.com
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