C3is Inc. (NASDAQ:CISS) witnessed a pronounced uptick in its stock price during after-hours trading on Wednesday, with shares escalating by 28.95% to reach $1.96. This surge followed the release of a Securities and Exchange Commission (SEC) filing which revealed that Imperial Petroleum Inc. (NASDAQ:IMPP), a fellow Greece-based shipping and transportation entity, possesses an 81.9% majority ownership in C3is.
Both companies operate within the international shipping and transportation sector, establishing a significant connection across their business operations and corporate governance. The recent SEC disclosure was driven by adjustments connected to C3is’s convertible preferred stock and warrants, impacting share ownership figures.
On February 4, Imperial Petroleum filed an update with the SEC outlining its beneficial ownership of approximately 9.9 million shares in C3is. This change was associated with revisions to the conversion price tied to the 5.0% Series A Cumulative Convertible Perpetual Preferred Stock issued by C3is.
Specifically, the conversion price was recalibrated to $1.5131 subsequent to a 1-for-20 reverse stock split implemented by C3is on January 26. Concurrently, the exercise prices for Class B-1, B-2, C-1, and C-2 warrants underwent adjustments during a designated adjustment window that concluded on February 2. These corporate actions influenced the overall shareholding calculations disclosed by Imperial Petroleum.
Further detailing the relationship between the two firms, the filing highlighted overlapping management and directorships. Harry N. Vafias holds prominent leadership roles, serving as chairman, chief executive officer, and president of Imperial Petroleum, while simultaneously occupying the position of non-executive chairman at C3is. In addition, Vafias directly owns 5,028 shares of C3is through entities Arethusa Properties Ltd. and Flawless Management Inc.
Beyond Vafias, two other executives, John Kostoyannis and George Xiradakis, maintain directorship roles in both Imperial Petroleum and C3is. This management overlap further underscores the closely intertwined nature of the two organizations.
Examining C3is’s trading performance and market positioning reveals a company facing substantial challenges. With a market capitalization of roughly $1.56 million, the stock trades close to its 52-week low of $1.35, with a high of $152.40 recorded during the period. A technical indicator, the Relative Strength Index (RSI), stands at 22.64, suggesting an oversold condition but also reflecting significant weakness in stock momentum.
Over the past year, C3is’s stock has precipitously declined approximately 98.94%, marking an intense downtrend. The deep valuation erosion and weak technical standing indicate that while the recent after-hours rally is noteworthy, any sustained recovery would necessitate clear and sustained confirmation signals before investors could consider meaningful engagement.
On the day preceding the after-hours surge, C3is closed at $1.52, representing an 8.43% decrease. According to Benzinga Pro data, the stock has exhibited a negative price trend across short, medium, and long time frames, reinforcing its current subdued investor sentiment despite temporary volatility.
Imperial Petroleum’s shares, meanwhile, reflected a modest decline of 3.31%, closing at $3.21, highlighting differing market responses between the parent and subsidiary entities.
In summary, the disclosure of Imperial Petroleum’s significant ownership stake and the connected corporate structures triggered a substantial, though volatile, revaluation of C3is shares after hours. However, prevailing weak market fundamentals imply that investors should approach the stock with caution pending further developments.