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TULSA - Empire Petroleum Corporation (NYSE American:EP), a $171 million market cap oil and gas company currently trading at $4.89, announced Tuesday it has extended the expiration date of its previously announced subscription rights offering to August 20, 2025. According to InvestingPro data, the company operates with moderate debt levels, maintaining a total debt-to-capital ratio of 0.1.
The oil and gas company, which has producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, aims to raise gross proceeds of up to approximately $5 million through the offering, including $2.5 million from the exercise of warrants issued as part of the rights offering. The capital raise comes as InvestingPro analysis shows the company faces short-term liquidity challenges with a current ratio of 0.55.
Empire is distributing at no charge to holders of its common stock as of July 10, 2025, one subscription right for each share held. Each subscription right entitles the holder to purchase one unit at $0.07367, consisting of 0.0139 shares of common stock and one warrant exercisable for 0.0136 shares at $5.46 per whole share.
Due to the fractional nature of the offering, stockholders must hold at least 72 shares to receive subscription rights to purchase one whole share, and at least 74 shares to receive warrants to purchase one whole share.
The company stated that the extension will allow stockholders more time to submit final documentation and arrange finances for the rights offering.
Phil E. Mulacek, Chairman of the Board and one of Empire’s largest shareholders, has indicated his intention to participate in the rights offering and fully subscribe to his corresponding units, according to the press release statement.
The rights offering is described in detail in the prospectus supplement filed with the SEC on July 10, 2025, with additional supplements filed on July 24, July 25, and August 19, 2025.
In other recent news, Empire Petroleum has successfully secured a unanimous decision from the New Mexico Oil Conservation Commission, affirming its rights to the Residual Oil Zone in the Eunice Monument South Unit in Lea County. This ruling allows Empire to proceed with a CO₂ enhanced oil recovery pilot project over the next three years. Additionally, Empire Petroleum has been actively engaging shareholders through a subscription rights offering aimed at raising up to $5 million in gross proceeds. The company set July 10, 2025, as the record date for this offering, distributing one subscription right per share to its common stockholders. Each right permits the purchase of a unit, consisting of shares and warrants, at a specified price. The expiration date for this offering has been extended to August 18, 2025, providing shareholders with additional time to consider participation. This extension follows an initial adjustment of the deadline to July 30, 2025. Empire Petroleum’s efforts in both regulatory and financial arenas highlight its strategic initiatives and ongoing developments.
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