Imperial Petroleum Enters Into Warrant Exercise Transaction for $21.8 Million in Gross Proceeds

About this update from Imperial Petroleum Inc.

[{"type":"text","content":"ATHENS, Greece, June 13, 2022 (GLOBE NEWSWIRE) -- Imperial Petroleum Inc. (Nasdaq: IMPP) (the “Company”) announced today that it has entered into agreements with several accredited investors that are existing holders of its Class B Warrants wherein the investors agreed to exercise 31,150,000 outstanding Class B Warrants (the “Existing Warrants”) to purchase an aggregate of 31,150,000 shares of common stock for cash, at an exercise price reduced by the Company from $1.60 per share to $0.70 per share. These warrants were previously issued in an underwritten public offering which closed in March 2022. The net proceeds of the exercise of the Existing Warrants to the Company, after deducting estimated expenses and fees, are expected to be approximately $20.9 million. Maxim Group LLC acted as warrant inducement agent and financial advisor in connection with the transaction. The issuance of the Existing Warrants and the issuance of the common stock upon exercise thereof were conducted pursuant to the Company’s registration statements on Form F-1 previously filed with and subsequently declared effective by the Securities and Exchange Commission (“SEC”) on March 20, 2022. A final prospectus relating to the offering was filed with the SEC and is available on the SEC’s website at http://www.sec.gov. In consideration for the immediate exercise of the Existing Warrants for cash, the exercising holders will receive new Class D warrants to purchase up to an aggregate of 31,150,000 shares of shares of common stock (the “Class D Warrants”) in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). Each Class D Warrant is immediately exercisable for one share of common stock at an exercise price of $0.80 per share and will expire five years from issuance. The Class D Warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act and, along with the shares of common stock issuable upon their exercise, have not been registered under the Securities Act, and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. The Company has agreed to file a registration s...

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