Tulsa’s Empire Petroleum Corporation says it has started a previously announced subscription rights offering on a $25 million fund-raising program.
Empire, with production assets in New Mexico, North Dakota, Montana, Texas and Louisiana, is distributing at no charge to holders of its common stock, par value $0.001 per share, as of the close of business on March 7, 2024, one subscription right for each share of Common Stock held. Each subscription right entitles the holder to purchase 0.161 shares of Common Stock at a subscription price of $6.05 per share per one whole share of Common Stock.
As a result, a stockholder must hold at least seven shares of Common Stock to receive subscription rights to purchase at least one share of Common Stock. The subscription rights are non-transferable, and will not be listed for trading on any stock exchange or market. In addition, holders of subscription rights who fully exercise their subscription rights are entitled to over-subscribe for additional shares of Common Stock, subject to proration.
The Rights Offering is expected to expire at 5:00 p.m., Eastern Time, on April 3, 2024, subject to extension or earlier termination.
Empire’s chairman of the board, Phil E. Mulacek, said the company’s largest shareholders indicated they plan to take part in the Rights Offering.