© Reuters.
TULSA, Okla. – Empire Petroleum Corporation (NYSE American: EP), an oil and gas firm with operations across several U.S. states, has announced a subscription rights offering aimed at generating up to $25 million. The company has declared March 7, 2024, as the record date for the rights offering, where shareholders will receive one subscription right for each share owned.
These rights will allow shareholders to purchase additional shares of the company’s common stock at a rate of $6.05 per share. A total of 4,132,232 shares will be made available through this offering. The rights are non-transferable and will not be traded on any stock exchange.
Shareholders who fully exercise their rights will also have the opportunity to subscribe for additional shares, subject to availability and proration. The offering is set to expire on March 25, 2024, unless extended or terminated earlier.
Interested shareholders will receive a prospectus, a prospectus supplement, and detailed instructions on how to exercise their rights. Shareholders must complete the required documentation and submit payment by the expiration date to participate in the offering.
The details of the rights offering will be outlined in a prospectus supplement to be filed with the Securities and Exchange Commission (SEC) around the record date.
This announcement is based on a press release statement.
InvestingPro Insights
Empire Petroleum Corporation (NYSE American: EP) has recently made headlines with its subscription rights offering, but what do the numbers say? According to InvestingPro data, the company has a market cap of $141.18 million and is trading at a price that is significantly lower than its 52-week high, at approximately 43.66% of that value. This may signal a potential opportunity for investors considering the rights offering, as the shares are being offered at $6.05 each, while the previous close was at $5.94.
However, it’s important to note that Empire Petroleum is not profitable over the last twelve months, with a negative P/E ratio of -18.34. The company also operates with a moderate level of debt and has experienced a revenue decline of -16.68% over the last twelve months as of Q3 2023. These financial metrics can be critical for investors to consider, as they may impact the company’s future performance and the potential return on investment from the rights offering.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, including insights on the stock’s performance over various timeframes and its valuation multiples. For instance, the stock has fared poorly over the last month with a price total return of -21.48%, and it’s trading near its 52-week low. Moreover, Empire Petroleum is trading at a high Price/Book multiple of 7.5, which could be of interest to those looking at asset valuation.
For those interested in a more comprehensive understanding of Empire Petroleum’s financial health and future prospects, they can find further InvestingPro Tips by visiting https://www.investing.com/pro/EP. Don’t forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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This story originally appeared on Investing
