Empire Petroleum Corporation announced that it has commenced its previously announced subscription rights offering pursuant to which it intends to raise gross proceeds of up to approximately $10.0 million.
The Company is distributing at no charge to holders of its common stock one subscription right for each share of Common Stock held. Each subscription right entitles the holder to purchase 0.063 shares of Common Stock at a subscription price of $5.05 per share per one whole share of Common Stock.
As a result, a stockholder must hold at least 16 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 October 16, 2024 , subject to extension or earlier termination.
Phil E. Mulacek, Chairman of the Board of Empire, and Energy Evolution Fund, Ltd., the largest shareholders, have indicated that they intend to participate in the Rights Offering and fully subscribe to the shares of Common Stock corresponding to their subscription rights. They have each also indicated that they intend to fully exercise their over-subscription rights to purchase their pro rata share of the underlying securities related to the Rights Offering that remain unsubscribed at the Expiration Date.
Empire has current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana.
