DryShips Inc. (NASDAQ:DRYS) reported its unaudited operating and financial report for the quarter closed September 30, 2016. For 3Q2016, the firm posted a net loss of $5.2 million. Adjusted EBITDA came negative at $7.9 million in the reported period.
The highlights
Earlier in November 7, the company’s previously offered to unaffiliated purchaser Panamax vessel Ocean Crystal was given to its new owners. Gross proceeds from this sale were utilized to pay down the linked loan facility. In August, the previously reported alternative for the listed direct offering of 5,000 Series ‘C’ Convertible Preferred Warrants to buy 5,000 Series ‘C’ Convertible Preferred Shares was closed.
Net proceeds from the closed offering, after subtracting offering expenses and fees, came at nearly $5 million. DryShips is currently engaged in talks with its lenders for the reorganization of its bank facilities. Out of the total number, 3 have matured and the firm has not done the final balloon payment. For the remaining facilities, the firm has decided to suspend interest payments and principal to preserve cash liquidity.
In last week of October, DryShips reported the outcome of its AGM of Shareholders, which was planned on October 26, 2016. Many proposals were approved and accepted at the Annual General Meeting, the first one of which was the election of George Demathas as Class ‘C’ Director of the firm to serve until the 2019 AGM of Shareholders. Next in line was the approval of the appointment of Ernst & Young Qualified Auditors Accountants S.A., as the firm’s independent auditors for the year closing December 31, 2016. Additionally, the company approved one or more amendments to its amended and reaffirmed Articles of Incorporation to impact reverse stock splits of the firm’s released common shares.
DryShips reported that following the authority given to the Board at the AGM, the Board decided to effect a 1-for-15 reverse stock split.
