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DryShips raises $5m in equity sale

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.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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