TULSA - Empire Petroleum Corporation (NYSE American: EP), an oil and gas company with producing assets across the United States, has updated the terms of its subscription rights offering initially announced on March 7, 2024. The offering now allows shareholders to purchase additional shares at a revised price, aiming to raise approximately $20.66 million.
Shareholders of record as of March 7, 2024, have been granted one subscription right per share owned. These rights entitle them to buy 0.161 shares of common stock at $5.00 per full share. The rights are non-transferable and will not be listed on any exchange.
The deadline for this rights offering has been extended to April 10, 2024, 5:00 p.m. Eastern Time. Empire's Chairman Phil E. Mulacek and its largest shareholder, Energy Evolution Fund, Ltd., have expressed intentions to fully exercise their rights and also to over-subscribe for additional shares.
Subscribers have been provided with a prospectus, a supplemental prospectus, an explanatory letter, and a rights certificate. An updated prospectus supplement and rights certificate will be issued to reflect the modified terms. Shareholders wishing to participate must submit completed certificates and payment to the Securities Transfer Corporation, the rights offering's subscription agent.
The offering details are outlined in the prospectus supplements filed with the Securities and Exchange Commission on March 7 and March 28, 2024. Further information can be obtained from the Securities Transfer Corporation.
Empire Petroleum focuses on organic growth and strategic acquisitions that align with its portfolio of wells. The company operates in New Mexico, North Dakota, Montana, Texas, and Louisiana.
This news release does not constitute an offer to sell securities and is based on a press release statement. The offering is subject to state and federal law requirements, and the company advises consulting the SEC filings for a comprehensive understanding of the risks involved.
InvestingPro Insights
Empire Petroleum Corporation (NYSE American: EP) has been navigating a challenging market environment, as reflected in the company's recent financial metrics and stock performance. According to InvestingPro data, Empire Petroleum's market capitalization currently stands at approximately $119.94 million, with a negative price-to-earnings (P/E) ratio of -18.34, indicating that the company has not been profitable over the last twelve months.
The company's stock has experienced significant volatility, with a one-month price total return of -15.33%, and a more stark six-month price total return of -51.51%. This decline in share price is also highlighted by the InvestingPro Tip that the stock has fared poorly over the last month and has fallen significantly over the last year.
InvestingPro Tips also suggest that Empire Petroleum operates with a moderate level of debt and is trading at a high Price / Book multiple of 6.59, based on the last twelve months as of Q3 2023. This could imply that the company's assets are being valued relatively highly compared to its equity, which may be a point of consideration for investors looking at the intrinsic value of the company.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further insight into Empire Petroleum's financial health and stock performance. By using the coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
Investors are encouraged to review the full spectrum of data and tips available on InvestingPro to make informed decisions, especially in light of the company's current rights offering and the potential impact on shareholder value.
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