legally/ not illegal/
DryShips' Potential Downside Remains Massive
Apr.17.17 | About: DryShips Inc. (DRYS) Get Alerts
Bill Maurer
Bill Maurer
Long/short equity, long only, short only, growth
(9,918 followers)
Summary
DryShips' outstanding share count is near 55 million.
There's still up to $173.43 million left to be sold.
Another reverse split seems likely.
About 10 days ago, I provided an update on the carnage for shares of DryShips (NASDAQ:DRYS). Shares continued to plunge following news of the fifth reverse split in 13 months, and I stated that things were likely to get much worse. Unfortunately for investors, shares continue to sink, and the company's latest filing regarding the Kalani sale shows there is still a long way to go.
As of my previous article, DryShips was set to have about 47 million shares outstanding, along with $188 million worth of shares remaining to be potentially sold in the latest Kalani deal. Even though shares continue to fall, there has not been that much of a change in the latest program as seen in the most recent 6-K filing:
As mutually agreed to by the Company and the Investor, the Company sold ("I") 797,432 Shares to the Investor, pursuant to a Fixed Request Notice with a Fixed Amount Requested of $5.0 million, following a Pricing Period of April 10, 2017, for a Fixed Request Amount of approximately $1.82 million at a price per share of approximately $2.28 mutually agreed to by the parties, resulting in estimated net proceeds of approximately $1.80 million, after deducting estimated aggregate offering expenses, and (ii) 7,115,017 Shares to the Investor, pursuant to a Fixed Request Notice with a Fixed Amount Requested of $25.0 million, following a Pricing Period from April 11, 2017 to April 17, 2017, for a Fixed Request Amount of approximately $12.71 million at a price per share of approximately $1.79 mutually agreed to by the parties, resulting in estimated net proceeds of approximately $12.58 million, after deducting estimated aggregate offering expenses.
Between the date of the Purchase Agreement, April 3, 2017, and April 17, 2017, the Company has sold an aggregate 16,835,593 Shares to the Investor at an average price of approximately $3.15 per share. The aggregate gross purchase price for these Shares was approximately $52.97 million. The Company's estimated aggregate net proceeds from the sale of these Shares is approximately $52.44 million, after deducting estimated aggregate offering expenses. Following the settlement for all of such Shares sold as of the date hereof, the Company will have a total of 54,923,434 shares of common stock outstanding. As of the date hereof, up to $173.43 million of the Shares is remaining that the Company may sell pursuant to the Purchase Agreement.
