Imperial Petroleum Announces Agreement to Acquire Two Product Tankers

Rhea-AI Summary

Imperial Petroleum Inc. (Nasdaq: IMPP) has entered into an agreement to acquire two M.R. refined petroleum product tankers from Brave Maritime for approximately $31 million, with delivery expected by end of May 2022. The tankers, built in 2008 and 2011, have a combined capacity of about 97,000 dwt. Financing will come from cash reserves and new senior secured bank debt, currently under negotiation. This acquisition aims to enhance the company’s shipping capabilities in the petroleum sector.

Positive

• Acquisition of two refined petroleum product tankers to enhance fleet capacity.
• Transaction approved by independent audit committee, ensuring compliance and oversight.

Negative

• Financing for the acquisition relies on new bank debt, which may increase financial liabilities.
• Potential uncertainties related to the completion of the acquisition based on market conditions.

ATHENS, Greece, March 09, 2022 (GLOBE NEWSWIRE) -- Imperial Petroleum Inc. (Nasdaq: IMPP) (the “Company”) announced today that it has entered into an agreement to acquire two M.R. refined petroleum product tankers, built at SLS Shipbuilding, South Korea in 2008 and at Shin Kurushima Dockyard, Japan in 2011 respectively, with an aggregate capacity of approximately 97,000 dwt, from Brave Maritime for an aggregate purchase price of about $31 million, with delivery on a charter free basis expected by end of May 2022. The Company expects to finance the purchase price with cash-on-hand and new senior secured bank debt for which it is in discussions to secure with an international financial institution. The transaction with Brave Maritime, which is affiliated with members of the Vafias family, was approved by the Company’s audit committee comprised of independent directors.

ABOUT IMPERIAL PETROLEUM INC.

Imperial Petroleum Inc. is a ship-owning company providing petroleum product and crude oil seaborne transportation services. The Company currently owns three M.R. refined petroleum product tankers and one Aframax crude oil tanker with a total capacity of 255,804 deadweight tons (dwt). Imperial Petroleum Inc.’s shares of common stock and 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock are listed on the Nasdaq Capital Market and trade under the symbols “IMPP” and “IMPPP”, respectively.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, or impact or duration of the COVID-19 pandemic and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although IMPERIAL PETROLEUM INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, IMPERIAL PETROLEUM INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include risks discussed in our filings with the SEC and the following: the completion of the acquisition the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in IMPERIAL PETROLEUM INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by IMPERIAL PETROLEUM INC. with the U.S. Securities and Exchange Commission.

Company Contact:

Fenia Sakellaris
IMPERIAL PETROLEUM INC.
00-30-210-6250-001
E-mail: fs@Imperialpetro.com

FAQ

What is the value of the tankers Imperial Petroleum is acquiring?

Imperial Petroleum is acquiring the two tankers for approximately $31 million.

When is the expected delivery date for the new tankers?

The delivery of the tankers is expected by the end of May 2022.

How will Imperial Petroleum finance the acquisition of the tankers?

The acquisition will be financed using cash-on-hand and new senior secured bank debt.

What is the capacity of the acquired tankers?

The two tankers have a combined capacity of about 97,000 deadweight tons (dwt).

Who is the seller of the tankers?

The tankers are being acquired from Brave Maritime.