While U.S. markets continue to move to new highs, there is one firm that continues to move in exact opposite direction. DryShips Inc. (NASDAQ:DRYS) continues to decline after its share sale deal worth $200 million with Kalani Investments. As increased dilution adds up, stock continue to decline.
The buzz
As of now, DryShips is selling a block of stock to Kalani on weekly basis. Before this deal started, more than 36 million shares were due. After previous week’s sale, that count had soared to over 58 million, and unfortunately, much of the Kalani agreement was still pending. After the closing bell on Friday, the company submitted another 6-K specifying the latest round of this agreement.
As mutually accepted by the firm and the Investor, DryShips sold over 44 million shares to the Investor, following a Fixed Request Notice along with a Fixed Request Amount Invited of $75 million subsequent to a Pricing Period starting February 27 to March 3, 2017. The amount fixed was $75 million, depending on price per share of almost $1.67 mutually accepted by the parties for total gross purchase price of $75 million, leading in projected net proceeds of $74.3 million. This figure was known after deducting the firm’s estimated aggregate offering costs.
Between the date of the announced Purchase Agreement, the firm has sold over 67 million Shares to the Investor priced at almost $1.93 a share. The total gross purchase price was $130 million. DryShips projected aggregate net proceeds from this stock sale is almost $128.7 million, after deducting projected aggregate offering expenses.
Subsequent to the closure for all of shares sold, the firm will have over 103 million shares of common stock due. With nearly two-thirds of this Kalani transaction closed, the share number has gone up to nearly 104 million from 36 million.
DryShips’ shares price has declined nearly 70% after the recent Kalani deal was reported.
