Tulsa’s Empire Petroleum Corporation has launched its $5 million registered rights offering as it moves to raise money.
In an SEC filing, the company said the offering includes $2.5 mililon to be received upon exercise of warrants. Under the terms of the rights offering, the Company will grant, at no charge, to each stockholder as of the close of business on the record date of July 10, 2025, one non-transferable subscription right for each whole share of common stock owned by that stockholder on the record date.
Phil E. Mulacek, Chairman of the Board of Empire and one of the Company’s largest shareholders, has indicated that he intends to participate in the Rights Offering and fully subscribe to the units corresponding to his subscription rights. He has also indicated that he intends to fully exercise his over-subscription rights to purchase his pro rata share of the underlying securities related to the Rights Offering that remain unsubscribed at the Expiration Date.
Each subscription right will entitle a rights holder to purchase one unit at a subscription price equal to $5.30 per whole share (subject to rounding down to avoid the issuance of fractional shares), each unit consisting of 0.0139 shares of the Company’s common stock and one warrant exercisable for 0.136 shares of the Company’s common stock.
Empire, a company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, said the rights offering will also include an oversubscription privilege, which will entitle stockholders who fully exercise their subscription rights the right to purchase at the same exercise price additional units in the rights offering that other stockholders do not purchase, subject to availability and pro-rata allocation of units among rights holders exercising such oversubscription privilege.
No fractional shares of common stock will be issued in the rights offering, including upon exercise of the warrants. The subscription rights will expire if they are not exercised by 5:00 p.m. Eastern time on July 25, 2025 (unless extended). The warrants will expire 90 days after the expiration date of the rights offering.
