Imperial Petroleum (IMPP)
Galloway Capital Partners disclosed a position of 398,358 shares of the shipping company, which includes 137,700 shares underlying options, representing a 2.3% stake in the outstanding stock.
In a letter addressed to Imperial Petroleum CEO and Chairman Harry Vafias, Galloway expressed concerns regarding the timing of the firm’s $17 million unit offering priced at $2 per share. The offering took place on August 11, just after Imperial Petroleum reported earnings the day before. Galloway stated that the company had no debt and approximately $100 million in cash at that time. They described the financing round as “very dilutive” and believed that it significantly diminished shareholder value. As a solution, Galloway suggested that Imperial Petroleum immediately repurchase the recently issued shares.
Additionally, Galloway expressed a desire to meet with Imperial’s management to discuss ways to enhance shareholder value. They also recommended expanding the company’s board of directors to include representation from outside shareholders and professional investors.
Imperial Petroleum has experienced a 50% decline in stock value this year, following an 89% plunge in share price in 2022.
Increases in Holdings
ARS Pharmaceuticals (SPRY)
RA Capital raised its holding in the pharmaceutical firm to 6,759,678 shares. RA Capital bought 3,750,000 ARS Pharmaceuticals shares for $6.20 each from Robert G. Bell, the company’s co-founder and chief science officer, on Aug. 29.
Following the purchase, RA Capital owns 7.1% of ARS Pharmaceuticals’ outstanding stock. RA Capital founder Peter Kolchinsky serves on ARS Pharmaceuticals’ board.
Mastercraft Boat Holdings (MCFT)
Coliseum Capital lifted its interest in the powerboat manufacturer to 1,716,974 shares. Coliseum Capital purchased 360,200 and 30,000 Mastercraft Boat shares, respectively, on Sept. 1 and Sept. 5 at per share prices ranging from $21.07 to $23. Coliseum Capital now holds almost 10% of Mastercraft Boat’s tradable stock.
The fresh investment followed Mastercraft Boats’ Aug. 30 earnings announcement that revealed a 15.5% drop in year-over-year quarterly revenue and lowered fiscal-2024 guidance.
Decreases in Holdings
Summit Financial Group (SMMF)
Castle Creek Capital trimmed its stake in the holding company for Summit Community Bank to 699,745 shares. Castle Creek sold 7,956 Summit Financial shares on Aug. 31 at a price of $25 apiece, leaving it with 4.8% of the financial-services firm’s tradable stock. That figure is below the 5% threshold that would require Castle Creek to publicly disclose any further Summit Financial stock sales.