DryShips has agreed to sell 5,000 of its newly designated series C convertible preferred shares and 148,998 common shares to an unnamed institutional investor, which will raise around $5m in net proceeds.
The buyer has signed a securities purchase agreement with DryShips that includes warrants to purchase 5,000 more of the Series C convertible shares and could raise an additional $5m if the warrants are exercised.
The securities will be issued to the investor through a registered direct offering, the NASDAQ-listed company said.
DryShips’ share price plunged on Tuesday after the George Economou-led company revealed it had defaulted on three bank facilities and raised “substantial doubt” of its ability to carry on as a going concern.
The rout has continued today. The stock has declined another 13% since markets opened in the US, with shares trading at $1.18 at the time of writing.