Empire Petroleum Corporation raised $2.5 million from its recent rights offering, stating that the offer was “fully subscribed.”
The offering closed on August 20 and according to a recent company announcement, received subscriptions for more than 100% of the securities available in the Rights Offering.
The Rights Offering generated approximately $2.5 million in gross proceeds, before expenses, and could potentially result in an additional $2.5 million from the future exercise of the warrants issued as part of the offering.
Each unit in the Rights Offering was issued at a subscription price of $0.07367 per unit, with each unit consisting of 0.0139 shares of common stock at $5.30 per whole share together with a warrant exercisable for 0.0136 shares of common stock at $5.46 per whole share. The warrants will expire on November 18, 2025, which is 90 days after the expiration of the Rights Offering.
As previously indicated, Phil E. Mulacek, Chairman of the Board of the Company and one of the Company’s largest shareholders, participated in the Rights Offering and fully subscribed to the securities corresponding to his subscription rights, as well as fully exercising his over-subscription rights to purchase his pro rata share of the underlying securities related to the rights offering that remain unsubscribed.
Empire Petroleum Corporation, based in Tulsa. has producing assets in New Mexico, North Dakota, Montana, Texas and Louisiana.