Top Ships Inc (TOPS)

[pennyvestor]

'nathanial', refer in bold below your answer.

On February 21, 2017, the Issuer amended and restated the Family Trading Credit Facility (the " Amended Family Trading Credit Facility ") in order to, among other things, remove any limitation in the use of funds drawn down under the facility, reduce the mandatory cash payment due under the facility when the Issuer raises capital through the issuance of certain securities, remove the revolving feature of the facility, and extend the facility for up to three years. Further , under the terms of the Amended Family Trading Credit Facility, if the Issuer raises capital via the issuance of warrants, debt or equity, it is obliged to repay any amounts due under the Amended Family Trading Credit Facility and any accrued interest and fees up to the time of the issuance in cash or in Common Shares at Family Trading's option. Family Trading retains the right to delay this mandatory repayment at its absolute discretion. For the first six months after the execution of the facility, no more than $3.5 million can be mandatorily prepaid in cash. Subject to certain adjustments pursuant to the terms of the Amended Family Trading Credit Facility, the number of common shares to be issued as repayment of the amounts outstanding under the facility will be calculated by dividing the amount redeemed by 80% of the lowest daily volume weighted average price of the common shares on the Nasdaq Capital Market during the twenty consecutive trading days ending on the trading day prior to the payment date (the " Applicable Price "), provided, however, that at no time shall the Applicable Price be lower than $0.60 per common share (the " Floor Price ").

Further, in the case where the Issuer raises capital (whether publicly or privately) and the Applicable Price is higher than the lowest of (henceforth the " Issuance Price "):

a.
the price per share issued upon an equity offering of the Issuer;

b.
the exercise price of warrants or options for Common Shares;

c.
the conversion price of any convertible security into Common Shares; or

d.
the implied exchange price of the Common Shares pursuant to an asset to equity or liability to equity swap,

then the Applicable Price will be reduced to the Issuance Price. Finally, in case the Applicable Price is higher than the exercise price of the Warrants, the Applicable Price will be reduced to the exercise price of such outstanding Warrants.

As of September 21, 2017, upon conversion at $0.60 (Floor Price) of $1.3 million currently outstanding under the Amended Family Trading Credit Facility, Family Trading would receive 2,135,000 Common Shares.

https://ih.advfn.com/p.php?pid=nmona&article=75710182