DryShips Inc. (NASDAQ:DRYS) has revealed that it struck a securities purchase deal with an institutional investor for the sale of 148,998 common shares, 5,000 series C Convertible Preferred Shares and 5,000 newly designated series C Convertible Preferred Shares.
The firm announced that the investor will receive the securities through a registered direct offering. DryShips estimates that the net revenue it will gain from the sale after charges and fees have been deducted will roughly be $5 million. There is also a chance that the firm will receive as much as $5 million if all the warrants are exercised. This might boost the total revenue to $10 million.
The company warned that the press release should not be considered an offer to purchase any of the company’s securities. The announcement also added that any other securities offers will be availed via a prospectus supplement which will accompany the base prospectus. The company has filed a shelf registration statement on Form-3 which includes the base prospectus that is tied to the securities being offered. It filed and declared the issue as effective through the US Securities Exchange Commission. It has also filed the prospectus supplement with the sec. Any individual who wishes to access the documents can do so on the Securities Exchange Website. The documents can alternatively be sourced from the company.
Dryships owns the Drybulk offshore support vessels and carriers which run their operations on a global scale. The firm owns 20 Panamax Drybulk carriers and 6 offshore supply carriers. The 6 vessels include oil spill recovery vessels and 2platform supply vessels. The press release issued by the firm stated that the subjects discussed under the release might have an impact on forward looking statements released by the firm as far as Private Securities Litigation Reform Act made in 1995 is concerned. The act provides protection for forward-looking statements so that it can encourage companies to give projections about the performance of their businesses.