Company hopes to refinance senior credit facility, reduce senior debt
By Devika Patel
Knoxville, Tenn., Sept. 23 - Imperial Petroleum, Inc. offered further details about its $3.18 million private placement of stock that settled on Sept. 21. The deal priced for $3.11 million on Sept. 16.
The company sold 4,236,669 common shares at $0.75 apiece. The price per share is a 53.99% discount to the Sept. 15 closing share price of $1.63.
The investors also received five-year warrants for 2,118,334 shares, which are each exercisable at $1.00. The strike price represents a 38.65% discount to the Sept. 15 closing share price.
Rodman & Renshaw, LLC was the agent.
"We're pleased to have completed this financing and we intend to put most of the funds to work in quickly expanding our biodiesel production by at least another 30% at our plant in Middletown, Ind.," Imperial's president Jeffrey T. Wilson said in a press release.
" We have been diligently pursuing the refinancing of our senior credit facility at e-Biofuels, which has been extended through Jan. 31, 2012, however, the volatility in the capital markets continues to create uncertainty in that outcome. The expansion of our biodiesel production will allow us to more aggressively pay our bank debt down out of cash flow," Wilson added in the release.
"We believe that by the expiration date of our current credit facility, we will have reduced our senior debt to the point where we can more readily secure new financing in the event that another bank extension is unavailable at that time," Wilson concluded at settlement.
Based in Evansville, Ind., Imperial is an oil and natural gas exploration company.
| Issuer: | Imperial Petroleum, Inc.
|
| Issue: | Common shares
|
| Amount: | $3,177,502
|
| Shares: | 4,236,669
|
| Price: | $0.75
|
| Warrants: | For 2,118,334 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | Sept. 16
|
| Settlement date: | Sept. 21
|
| Stock symbol: | OTCBB: IPMN
|
| Stock price: | $1.63 at close Sept. 15
|
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