Shares in George Economou’s DryShips plunged over 30% today after the Nasdaq-listed company announced its third reverse stock split this year.
DryShips announced the 1-7 reverse split yesterday after it was approved at the annual AGM, with the split to take effect on May 11 reducing the number of common shares from 65,564,307 shares to around 9.4 million shares.
Investors have dealt with all three reverse splits this year in brutal fashion, and today sent DryShips shares down over 30% to just 74 cents. After a reverse split in January, shares were trading at $8.08, and proceeded to drop to 70 cents in April after a subsequent 1-4 reverse split was announced.
Earlier this week, four US national securities law firms announced they were investigating potential securities fraud at the company, stemming from a Wall Street Journal article focusing on the sale of shares last year and subsequent share offerings to Kalani Investments.
DryShips shares have lost around 99.4% of their value since the start of this year, and $100,000 invested in the stock a year ago on May 4, 2016 would be worth just $12.72 today.