Why Is IMPP Stock Down 10% Today?

by

Imperial Petroleum announced pricing for its direct registered offering worth $60 million.

  • Wearable Devices said that it intends to use the net proceeds from the warrant inducement transaction to meet its working capital and other general corporate requirements.
  • The new warrants will have an exercise price of $1.86 per share and will expire five years following the approval date.
  • Wearable Devices said the closing of the warrant inducement transaction is expected to occur on or about December 1.

Imperial Petroleum (IMPP) shares fell by more than 10% in early trading on Friday after the company announced pricing for its direct registered offering.

Add Asianet Newsable as a Preferred Source

According to the company, the gross proceeds from the offering are expected to be approximately $60.0 million.

Imperial Petroleum stated ​​it has entered into a securities purchase agreement with two institutional investors for the sale of over 9.52 million shares of its common stock and accompanying Class F warrants to purchase up to 9.52 million shares of common stock and Class G warrants to purchase the same quantity of common stock at a combined purchase price of $6.30 per share and accompanying warrants.

The Class F and Class G warrants will have an exercise price of $6.30 and will be immediately exercisable. The warrants will expire five years following the date of issuance.

Details Of The Agreement

Wearable Devices stated that, in consideration of the immediate exercise of existing warrants in full for cash, it has agreed to issue new unregistered warrants to the investor to purchase up to 5.81 million shares via a private placement.

The new warrants will have an exercise price of $1.86 per share and will expire five years following the approval date. Wearable Devices said the closing of the warrant inducement transaction is expected to occur on or about December 1.

Previous Registered Offering

In September, the company had announced a $4 million registered direct offering and concurrent private placement. The company said it has entered into a securities purchase agreement with a single institutional investor for the purchase and sale of one million ordinary shares at a purchase price of $4 apiece in a registered direct offering.

Retail sentiment remained unchanged in the ‘bearish’ territory, with message volumes at ‘extremely low’ levels, according to data from Stocktwits.

Shares of Wearable Devices have declined by over 77% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

Leave a Comment