DRYS
Out with Kalani investments, In with Sierra investments?
August 11, 2017 8:01 AM EDT
DryShips Inc. (NASDAQ: DRYS) today announced that the audit committee of the Company's board of directors (the "Audit Committee") has approved a binding term sheet (the "Term Sheet") pursuant to which the Company will sell the Company's common shares to entities affiliated with its Chairman and Chief Executive Officer, Mr. George Economou ("Mr. Economou"), for aggregate consideration of $100 million at a price of $2.75 per share (the "Private Placement").
Pursuant to the Term Sheet, the Audit Committee has also approved a subsequent rights offering (the "Rights Offering") that would allow the Company's shareholders to purchase their pro rata portion of up to $100 million of the Company's common shares at a price of $2.75 per share. The Rights Offering will be backstopped in full by Sierra Investments Inc. ("Sierra"), an entity affiliated with Mr. Economou.
August 11, 2017 8:08 AM EDT
DryShips Inc. (NASDAQ: DRYS) announces that in connection with the transactions announced earlier today (the "Proposed Transactions"), (i) it has terminated the common stock purchase agreement, dated April 3, 2017, by and between the Company and Kalani Investments Limited, a company organized and existing under the laws of the British Virgin Islands, effective immediately; (ii) Mr. George Economou, the Company's Chairman and Chief Executive Officer, has agreed, either directly or through his affiliated entities, to refrain from re-selling for a six month period any Company common shares to be acquired by him in the Proposed Transactions; and (iii) the Company has agreed not to conduct any equity offerings until after December 31, 2017, without the prior approval of the majority of its unaffiliated shareholders.
"Then there was a woman, a lion of a woman."
