Imperial Petroleum Inc (NASDAQ:IMPP) shares are trading lower Friday morning after the company announced the pricing of a $60 million registered direct offering. Here’s what investors need to know.
- IMPP is encountering selling pressure. Get the complete analysis here.
What To Know: The Athens-based shipping company entered agreements with two institutional investors to sell approximately 9.5 million shares of common stock at a combined purchase price of $6.30 per share.
The deal presents significant dilution risk, as it includes accompanying Class F and Class G warrants to purchase up to an additional 9.5 million shares each (19 million total), also carrying an exercise price of $6.30.
Imperial stated it intends to use the net proceeds for working capital and general corporate purposes. Maxim Group LLC is acting as the sole placement agent for the offering, which is expected to close on Dec. 1.
Benzinga Edge Rankings: According to Benzinga Edge rankings, the stock currently maintains a high Value score of 94.91.
IMPP Price Action: Imperial Petroleum shares were down 22.33% at $4.66 at the time of publication on Friday, according to Benzinga Pro data.
Read Also: Nebius Dropped 30% From Highs — But Its Growth Story Didn’t
How To Buy IMPP Stock
By now you're likely curious about how to participate in the market for Imperial Petroleum – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Imperial Petroleum, which is trading at $4.66 as of publishing time, $100 would buy you 21.45 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
Image: Shutterstock
