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0 0 0 0.00221238938053093 -0.00221238938053093 0.00214601769911496 0.00221238938053093 0.00214601769911496
Stock impact report

Imperial Petroleum: Downgrading On Renewed Dilution Well Below Net Asset Value [Seeking Alpha]

Imperial Petroleum Inc. - Common Shares (IMPP) 
Company Research Source: Seeking Alpha
Assuming exercise of all existing and newly-issued warrants, outstanding shares would increase by almost 100%, while NAV per share would be reduced by almost 25%. The offering makes no sense, as the company is debt-free and flush with cash. However, another large-scale related party transaction might be in the works already. While the offering has increased the margin of safety for holders of the company's 8.75% Series A Cumulative Redeemable Perpetual Preferred Shares, there are better choices available. Given renewed common shareholder dilution well below net asset value, I am downgrading Imperial Petroleum's common shares from "Buy" to "Hold" while reiterating my "Hold" rating on the company's preferred shares. HanSik Jeong/iStock via Getty Images Note: I have covered Imperial Petroleum ( IMPP IMPPP ) previously, so investors should view this as an update to my earlier articles on the company. Rally To Multi-Year Highs In November Almost three months ago, I More Show less Read more
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