This would mean that at current price they will have to sell at least 100 M more shares to make $ 500,000,000.
Value of shares after dilution using Friday's share price as basis for calculation :
Value of Share price after Dilution = Friday's share price * present outstanding / Total outstanding after dilution
= 6.30 * 43,000,000 /143,000,000 = 1.89
Plus breach of covenant with existing shareholders. In short you have to pay them additional shares so they keep their mouth shut, means more dilution. Means DRYS shares are almost worthless after this dilution for along time till business picks up
CUSIP No. Y2109Q101
The purpose of this Amendment No. 3 to Schedule 13D is to report the entry into
a lock up agreement by Mr. George Economou with Merrill Lynch & Co. and Merrill
Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch"), dated January 27,
2009, in connection with the ATM Equity OfferingSM Sales Agreement (the "Sales
Agreement") by and between DryShips Inc. (the "Issuer") and Merrill Lynch
relating to the offer and sale of up to $500,000,000 of common shares, par value
$0.01 per share, of the Issuer from time to time through Merrill Lynch as sales
agent.
Disclaimer: Do not buy or sell based on my recommendation. I am not your financial advisor .My recommendations are based on my intuition, research or both and may be right or wrong.
