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The future p/e is what matters! In the past they had the tankers that made most of the profit.
It's a letter from an investment manager who bought shares for his fund 6-8 months ago....now he's fighting Harry
Harry Vafias, Chairman and Chief Executive Officer
Imperial Petroleum, Inc.
331 Kifissias Avenue
Erithrea 14561
Athens, Greece
Dear Mr. Vafias:
As you know, Galloway Capital Partners, LLC (“GCP”) together with our affiliates recently sent you a letter and filed a 13D with the U.S. Securities & Exchange Commission. Since this filing I have received a number of inquiries from shareholders who are equally dismayed at the recent actions taken by Imperial Petroleum, Inc. (the “Company”) and the breach of fiduciary duty of its Board of Directors.
We are stunned at the recent announcement that the Company has approved a Share Repurchase Program and the acquisition of two additional vessels from affiliates of the CEO. The press release states in pertinent:
“ATHENS, Greece, Sept. 07, 2023 (GLOBE NEWSWIRE) -- IMPERIAL PETROLEUM INC. (Nasdaq: IMPP) (the “Company”) today announced that its Board of Directors has approved a share repurchase program and authorized the officers of the Company to repurchase, from time to time, up to $10,000,000 of the Company's common stock. Shares may be purchased in open market or privately negotiated transactions, at times and prices that are considered to be appropriate by the Company, and the program may be suspended or discontinued at any time.The Company also announced that it has entered into an agreement to acquire two tanker vessels, the aframax tanker Stealth Haralambos, built in 2009 and the product tanker Aquadisiac built in 2008, with an aggregate capacity of approximately 163,716 dwt. The aggregate purchase price for these acquisitions is $71 million. Both vessels will be delivered on a charter-free basis by the end of January 2024. The Company expects to finance the purchase price with cash-on-hand. The transaction with affiliates of the Vafias family, was approved by the Company’s audit committee comprised of independent directors.”
The announced re-purchase of $10 million of stock from time-to-time is not sufficient. The Company should immediately tender for the 8.5 million shares it recently sold at $2, as well as the warrants.
Secondly, engaging in additional transactions with affiliates of the CEO reeks of self-dealing at the expense of the shareholders. In our opinion as well as that of the numerous shareholders who have contacted me and my attorney, these transactions, the decline in the share price due to the actions taken by the Board are being pursued to enrich you, your family and your affiliates at the expense of shareholders and investors.The Company has offered no explanation as to why they closed a hyper-dilutive financing which was below the share price at the time of the Offering, at a significant discount to the Company’s asset value and all this when the Company had $100 million in cash and no debt. This transaction has significantly damaged shareholders who have endured a decline in share price by 99%.
Said it simple terms, you and your affiliates are personally benefitting from the decline in share price as a means to acquire a greater ownership of the Company. This is done to the detriment of all the shareholders of the Company.
In addition, we would like to recommend two candidates to be selected by us to be appointed to the Company’s Board of Directors. These individuals will have strong public board and capital markets experience and will actively assist in working with the Board and its advisors to create shareholder value.
I have attempted to reach you on several occasions without any success or even the courtesy of a response. It’s imperative that we speak as soon as possible to discuss a strategy to revitalize the share price and increase shareholder value.
We continue to remind you that the Board of Directors and management have a fiduciary duty to all shareholders and obligation to restore and rebuild shareholder value. We urge you to act in a manner consistent with your fiduciary responsibilities to all of the Company’s shareholders.
The Company has received $279 million in purchase orders for Mullen Class 1 and Class 3 EV Vans and Trucks from Randy Marion Automotive Group with initial revenues from Class 3 vehicle deliveries expected during the quarter ending Sept. 30, 2023.
NUMBERS
I TOLD YOU ALL
There is nothing to sue, there is a buy back and no dilution, this reward program exists in every company, for raising money? Everything is legal. Those who call buy back dilution should be sued.
How can you call buy back dilution? Check the number of shares! The number of shares is decreasing!
Yes I know, and you know?
The company needs to make it clear that there was no distribution of shares to the employees because milestones need to be met throughout the coming years.There are 172.5 million shares which means there is BB no dilution
A company that sells cars with a market value of only 86 million dollars? This is a huge bargain, the company is worth much more and it doesn't matter if it is in OTC muln, this is a huge bargain in my opinion.
VEHICLE COMPLETION MILESTONES. For each vehicle completion milestone set forth below that is satisfied within the performance period specified, the Company will issue to Participant a number of shares of Common Stock equal to 3% of Mullen’s then-current total issued and outstanding shares of Common Stock :
(i) Procuring full USA certification and homologation of its Class Three Van by end of December 2023;
(ii) Full USA certification and homologation of the Bollinger B1 sports car by end of June 2025; and
(iii) Full USA certification and homologation of the Bollinger B2 sports car by end of June 2025.
(b)?????????? REVENUE BENCHMARK MILESTONES. For each $25 Million of revenue recognized by the Company (each a "Revenue Tranche"), and subject to an aggregate maximum of recognized revenue of $250 Million between the Date of Grant and the end of December 2025, the Company will issue to Participant a number of shares of Common Stock equal to 1% of Mullen’s then-current total issued and outstanding shares of Common Stock as of the date a Revenue Tranche is achieved.
*This has not yet occurred so there was no dilution*
What about the 52 million issued to DM post RS, and the 16 million and the 14 million.....
Good question, it's just a reward plan, in order to receive these shares he has to meet sales goals and the like, read the conditions of receiving the shares.
He didn't sell shares, I saw that he bought, where did you see a sale? He did not receive shares until milestones were met.
They say he promised there would be no dilution later this year and I tell you there was no dilution, there are no more than 184 million shares, they are just accusing him of lies, I want proof that there was dilution and there are more than 184 million shares.
Those who are short because of the "dilution" will lose big
There was no dilution beyond 184 million, in order for the employees to receive shares, they must reach revenues of 25-250 million dollars.Those who are short because of the "dilution" will lose big
I doubt if there is anyone who understood what happened today, here is the explanation: 82 million shares were not distributed! They were only registered, therefore there was no dilution and DM did not sell anything. Employees will receive a bonus in shares only if they meet milestones such as:
REVENUE BENCHMARK MILESTONES. For each $25 Million of revenue recognized by the Company (each a "Revenue Tranche"), and subject to an aggregate maximum of recognized revenue of $250 Million between the Date of Grant and the end of December 2025, the Company will issue to Participant a number of shares of Common Stock equal to 1% of Mullen's then-current total issued and outstanding shares of Common Stock as of the date a Revenue Tranche is achievedNow I understand and I'm buying
Not a chance !
do you have a link I know about 184 million less 3.7 less that were deleted thanks to the BB
I don't believe there was dilution and the stock just goes down. I want proof of dilution and don't show me the compensation plan that is from last year before the split.The dilution that I know of is from the exchange of preferred shares for ordinary shares and thanks to this action the balance sheet looks much better.
Stop dreaming about remaining in NASDAQ and do a calculation of what the company is really worth. The stock will reach its real value sooner or later
Why are you scared of an incentive plan for senior employees from last year in which shares are given instead of cash and the amounts are before R/S and therefore not so large?
OTC? So what? It won't stop the car sales and it won't increase the $1.2 per share cash that the company has.
So what ? There will be fewer shares with a higher rate, so what?
The amount of 10 million shares was before the R/S, divide the amount by 9 and you will see that he bought and did not sell.
Increasing registered capital is not "distributing shares to himself" the fact is that after he bought shares in the market he only has 1.3 million shares and not 52 million
A company that produces electric cars should trade in billions and not 120 million. Where the stock is traded is not important at all, besides that the stock can go back to nsdaq
DM issues himself 52 million free trading shares ? who said that ? This can't be true when he owns 1.3 million shares including the 102,000 he bought last week.
The company announced that the cash will be enough for two years and not just for 2023 ,The declines are based on spreading lies, so there will be a short squeeze because the stock is trading deep below its value, only the cash worth $1.1
What happened is that the short position holders did not let the stock pass the dollar price and this caused fear that the stock would move to OTC, until the company receives an extension or does another R/S to meet the requirements, the momentum will be negative, I bet there will be a request for an extension until Monday.
There have been no dilutions lately, it is a lie that the shortists are spreading
Without dilutions (capital raising) the company would have gone bankrupt a long time ago, is that what the stock market is for if not to raise capital for the business?
I think the company will appeal
Shares fall because of bad reports! R/S has nothing to do with declines.
What's wrong with doing a buy back? There are complaints about this too?
Delusional people, what do you want from the company that tries to prevent the shorts and tries to keep the stock listed?
rs aims to keep the stock listed, it is good for the shareholders, RS does not change anything in terms of the value of the company.
with the dilution going on ?
Since the conversion of D shares there has been no dilution and this dilution brought important money to the company and greatly strengthened the capital. Now they are taking advantage of the low price to fix the dilution, well done.
The function of a buyback is to reduce the amount of shares, the opposite of dilution, the most correct is to buy at the lowest possible price