- Initiating coverage of Imperial Petroleum, a small, Greece-based oil tanker operator recently spun-off by StealthGas.
- Company has stated its intent to raise additional equity to renew and expand its fleet.
- Discussing ugly terms of last week's equity offering. Massive dilution resulted in net asset value per share being cut in half.
- Despite shares trading at at 65% discount to net asset value, investors should avoid Imperial Petroleum given ongoing, weak tanker market conditions and the very real risk of further, substantial dilution going forward.
For further details see:
Imperial Petroleum - Steer Clear Of This Bottom Of The Barrel Shipping Stock