Imperial Signs $12 Million Financing Agreement to Expand Biodiesel and Oil and Gas Operations
Imperial Petroleum, Inc. (OTCBB: IPTM)
EVANSVILLE, Ind.–(BUSINESS WIRE)–May 31, 2006–Imperial Petroleum, Inc. (”Imperial” or the “Company”) (OTCBB:IPTM – News) announced today that it has signed an engagement agreement with a full service investment financial group providing a broad range of securities related services for raising $12 million through a private placement of a Convertible Debenture. The general terms of the Debenture include a conversion price at a 20% discount to the market with a floor price of $0.40 per share (prior to giving effect to a proposed four for one reverse split of the Company’s common stock that is subject to shareholder approval) and an 9% coupon rate until converted, among other provisions. The funds will be used to (1.) retire the Company’s remaining debt after the proposed sale and re-structuring of its current debt facility as previously announced; (2.) provide development capital for workovers of the oil and gas wells retained by the Company; (3.) fund the initial requirements of the biodiesel deal with Domestic Energy Partners and (4.) provide acquisition and working capital for additional growth opportunities in the biodiesel and traditional oil and gas sectors.
Jeffrey T. Wilson, President of Imperial said, “This financing will allow us to more aggressively pursue opportunities that we believe will drive our future growth plans both in the traditional oil and gas exploration and production sector and the emerging biofuels markets. We are extremely excited with the financial group who is participating in this financing as the underwriter since it will give our Company’s story an audience in both the institutional and retail markets as we continue to grow.”
Imperial, through its subsidiaries and affiliates, is active in crude oil and natural gas production. Imperial is headquartered in Evansville, IN.
This press release may contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements are reasonable, there can be no assurance that such expectations will prove to be correct.
For further information contact: Jeffrey T. Wilson, President (812-867-1433) or (email at jtwilsonx1@aol.com) or Jeff Bishop at IR Affiliates at (469-252-3035). The DEP website is located at www.betterbiodiesel.com.
Contact:
Imperial Petroleum, Inc.
Jeffrey T. Wilson, 812-867-1433
email: jtwilsonx1@aol.com
OR
IR Affiliates
Jeff Bishop, 469-252-3035
Source: Imperial Petroleum, Inc.
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