Empire Petroleum’s rights offering fully subscribed, raises $2.5 million

TULSA - Empire Petroleum Corporation (NYSE American:EP), currently trading at $4.73 with a market capitalization of $171 million, announced Wednesday that its rights offering has been fully subscribed, generating approximately $2.5 million in gross proceeds before expenses.

The subscription period for the offering expired on August 20, with the company receiving subscriptions for more than 100% of the available securities. Due to the oversubscription, stockholders will receive their basic subscription privilege, but remaining shares and warrants will be allocated pro-rata among oversubscribing stockholders. According to InvestingPro data, this capital raise comes at a crucial time as the company’s short-term obligations currently exceed its liquid assets.

Phil E. Mulacek, Chairman of the Board and one of Empire’s largest shareholders, fully subscribed to the securities corresponding to his subscription rights and exercised his over-subscription rights.

Each unit in the rights offering was issued at a subscription price of $0.07367, consisting of 0.0139 shares of common stock at $5.30 per whole share and a warrant exercisable for 0.0136 shares of common stock at $5.46 per whole share. The warrants will expire on November 18, 2025, 90 days after the expiration of the rights offering.

The company noted that the offering could potentially result in an additional $2.5 million from the future exercise of the warrants issued as part of the offering.

Empire Petroleum is an oil and gas company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana.

The information in this article is based on a press release statement from the company.

In other recent news, Empire Petroleum Corporation has extended the expiration date of its subscription rights offering to August 20, 2025, aiming to raise up to $5 million, including $2.5 million from warrant exercises. This extension allows shareholders more time to consider participation and arrange financing. The company had previously announced the commencement of this offering, distributing one subscription right per share to holders of its common stock, with each right allowing the purchase of a unit consisting of common stock and a warrant. Additionally, Empire Petroleum secured a unanimous ruling from the New Mexico Oil Conservation Commission, affirming its rights to the Residual Oil Zone in the Eunice Monument South Unit. This ruling permits the company to implement a CO₂ enhanced oil recovery pilot project over the next three years. These developments indicate Empire Petroleum’s strategic efforts to enhance its operational capabilities and financial flexibility.

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