SCHEDULE: Imperial Petroleum Adjusts C3is Stake to 74.0%

Imperial Petroleum Inc. has updated its beneficial ownership in C3is Inc. to 74.0% following adjustments to convertible preferred stock and warrant exercises.

Summary

• Imperial Petroleum Inc. (Reporting Person) filed Amendment No. 8 to its Schedule 13D regarding its ownership in C3is Inc. (Issuer).
• Imperial Petroleum's beneficial ownership in C3is Inc. Common Stock is now 36,337,209 shares, representing 74.0% of the class.
• This update reflects changes in the conversion price of C3is Inc.'s 5.0% Series A Cumulative Convertible Perpetual Preferred Stock, which was adjusted to $0.344.
• The conversion price adjustment resulted from the exercise price adjustment of C3is Inc.'s Class D Warrants, as detailed in a December 11, 2025 prospectus.
• Imperial Petroleum's percentage ownership was also diluted due to an increase in the total outstanding shares of Common Stock, including shares issued upon the exercise of outstanding warrants.
• Harry N. Vafias, Chairman, CEO, and President of Imperial Petroleum, also serves as Non-Executive Chairman of C3is Inc. and beneficially owns 100,577 shares.
• Imperial Petroleum intends to continuously review its investment and may acquire or sell additional securities based on various factors, including C3is Inc.'s business, financial condition, and market conditions.

Sentiment

Score: 5

Explanation: The filing is a neutral, factual update regarding changes in beneficial ownership and conversion prices, without explicit positive or negative operational news.

Future Outlook

Imperial Petroleum Inc. intends to continuously review its investment in C3is Inc. and may acquire additional securities or sell existing holdings based on an ongoing evaluation of C3is Inc.'s business, financial condition, operations, prospects, strategic alternatives, and market conditions. Discussions with C3is Inc. management and other shareholders may occur, potentially exploring extraordinary corporate transactions.

Management Comments

• The Reporting Person intends to review its investment in the Issuer on a continuing basis.
• The Reporting Person may from time to time acquire additional securities of the Issuer, or retain or sell all or portion of the shares then held by the Reporting Person.
• Any actions the Reporting Person might undertake... will be dependent upon the Reporting Person's review of numerous factors, including... ongoing evaluation of the Issuer's business, financial condition, operations, prospects and strategic alternatives.
• The Reporting Person specifically reserves the right to change its intentions, or to formulate plans and proposals, with respect to any or all of the matters described in this paragraph, subject to applicable law and regulations.

Industry Context

NA

Related Party Transactions

• Imperial Petroleum Inc. is the beneficial owner of 74.0% of C3is Inc.'s common stock.
• Harry N. Vafias, Chairman, CEO, and President of Imperial Petroleum, also serves as the Non-Executive Chairman of C3is Inc.
• John Kostoyannis and George Xiradakis, directors of Imperial Petroleum, also serve as directors of C3is Inc.

Stakeholder Impact

• Shareholders of C3is Inc. experience dilution in their percentage ownership due to the issuance of shares from warrant exercises.
• Imperial Petroleum Inc. maintains a significant controlling stake in C3is Inc., potentially influencing strategic decisions and corporate direction.

Next Steps

• Imperial Petroleum Inc. will continue to review its investment in C3is Inc.
• Imperial Petroleum Inc. may acquire additional securities or sell existing holdings of C3is Inc.
• Discussions may occur between Imperial Petroleum Inc. and C3is Inc. management, other shareholders, and relevant parties, potentially exploring extraordinary corporate transactions.

Key Dates

Recommendation

The filing primarily provides a factual update on Imperial Petroleum Inc.'s beneficial ownership in C3is Inc., which now stands at 74.0% following adjustments to convertible preferred stock conversion prices and dilution from warrant exercises. While the substantial ownership by Imperial Petroleum suggests a degree of stability and strategic alignment, the dilution aspect warrants caution. The filing does not contain new operational or financial performance data to justify a 'buy' or 'sell' recommendation, thus a 'hold' is appropriate pending further information.

Keywords

C3is Inc., Imperial Petroleum Inc., Schedule 13D, beneficial ownership, common stock, preferred stock, warrants, conversion price, dilution, corporate governance