Why Is IMPP Stock Down 10% Today?

• Imperial Petroleum stated ​​it has entered into a securities purchase agreement with two institutional investors for the sale of over 9.52 million shares of its common stock.
• The Class F and Class G warrants will have an exercise price of $6.30 and will be immediately exercisable.
• The company said that it currently intends to use the net proceeds from the offering for working capital and general corporate purposes.

Imperial Petroleum (IMPP) shares fell by more than 10% in early trading on Friday after the company announced pricing for its direct registered offering.

According to the company, the gross proceeds from the offering are expected to be approximately $60.0 million.

Imperial Petroleum stated ​​it has entered into a securities purchase agreement with two institutional investors for the sale of over 9.52 million shares of its common stock and accompanying Class F warrants to purchase up to 9.52 million shares of common stock and Class G warrants to purchase the same quantity of common stock at a combined purchase price of $6.30 per share and accompanying warrants.

Details Of The Warrants

The Class F and Class G warrants will have an exercise price of $6.30 and will be immediately exercisable. The warrants will expire five years following the date of issuance.

Imperial Petroleum said that it currently intends to use the net proceeds from the offering for working capital and general corporate purposes. The company said the offering is expected to close on or about December 1.

How Did Stocktwits Users React?

Retail sentiment on Imperial Petroleum jumped to ‘bullish’ from ‘neutral’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

A bullish user on Stocktwits expects Imperial Petroleum stock to reach $15 in a few months.

Shares of Imperial Petroleum have gained over 60% this year and 50% over the last 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: WLDS Stock Gains Premarket On Securing $5.7M Through Warrant Inducement Deal

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