Empire Petroleum extends rights offering expiration date

Published 25/07/2025, 23:32
Empire Petroleum extends rights offering expiration date

TULSA - Empire Petroleum Corporation (NYSE American:EP), a $167 million market cap oil and gas company with $42.8 million in annual revenue, announced Friday it has extended the expiration date of its previously announced subscription rights offering and clarified the unit subscription price. According to InvestingPro data, the company has been experiencing rapid cash burn, making this capital raise crucial for its operations.

The rights offering, through which the company aims to raise gross proceeds of up to approximately $5 million, will now expire on August 18, 2025, at 5:00 p.m. Eastern Time, according to a press release statement. The company said it extended the deadline to give stockholders more time to consider participation and arrange financing. InvestingPro analysis shows Empire’s current ratio of 0.48, indicating its short-term obligations exceed its liquid assets.

Empire also adjusted the subscription price to $0.07367 per unit from the previously set $5.30 per unit to "more accurately reflect the intended terms of the offering."

The oil and gas company is distributing subscription rights at no charge to holders of its common stock as of July 10, 2025. Each subscription right allows the holder to purchase one unit consisting of 0.0139 shares of common stock and one warrant exercisable for 0.0136 shares of common stock at $5.46 per whole share.

Phil E. Mulacek, Empire’s Chairman of the Board and one of its largest shareholders, has indicated his intention to participate in the rights offering and fully subscribe to the units corresponding to his subscription rights, as well as exercise his over-subscription rights.

Empire Petroleum currently has producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana. The subscription rights and warrants are non-transferable and will not be listed for trading on any stock exchange or market. With revenue growth of 6.28% and an overall WEAK financial health score, investors can access more detailed analysis and 6 additional key insights through InvestingPro’s comprehensive financial metrics and expert tools.

In other recent news, Empire Petroleum Corporation has launched a subscription rights offering aimed at raising up to $5 million in gross proceeds. The offering includes up to $2.5 million from warrant exercises, with each shareholder receiving one subscription right per share as of the record date, July 10, 2025. Each right allows the purchase of one unit at $5.30, comprising 0.0139 shares of common stock and one warrant exercisable for 0.0136 shares at $5.46 per share. The company has extended the expiration date of this offering to July 30, 2025, to provide stockholders with additional time to consider participation and arrange financing. This strategic move is part of Empire Petroleum’s efforts to strengthen its financial position. Investors are closely monitoring these developments as they assess the potential impacts on the company’s future operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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