Why Is Top Ships (TOPS) Stock Down 59% Today?
Top Ships (NASDAQ:TOPS) stock is falling hard on Monday after the ocean shipping company announced the pricing of a public offering.
According to a press release, that public stock offering includes 6.75 million units. Each of these units costs $2 to purchase and contains one share of TOPS stock as well as a Class C warrant. That warrant allows the purchase of another share for an exercise price of $2.
Top Ships is expecting to raise $13.5 million in gross proceeds from the public stock offering. Investors will also note that the warrants are immediately exercisable and have an expiration date of five years after their issuance.
Why Is TOPS Stock Down?
Investors don’t often react well to a public stock offering. That’s because the introduction of new stock dilutes the value of shares already held by investors. It also decreases existing investors’ stake in the company by increasing the pool of outstanding shares.
To go along with that, the stock offering prices TOPS stock at $2 per share. That’s well below the company’s prior closing price, which was $4.44 on Friday. It’s worth noting that TOPS underwent a rally last week which boosted it from around $2 to that previous closing price.
There’s also heavy trading to take into account when looking at the falling price of TOPS today. As of this writing, more than 15 million shares have changed hands. That’s well above the daily average trading volume of about 4 million shares.
TOPS stock is down 58.8% as of Monday afternoon.
Investors seeking more of the latest stock market news are in luck!
InvestorPlace has all of the most recent stock coverage traders need for Monday! That includes what’s happening with shares of Clovis Oncology (NASDAQ:CLVS), Mullen Automotive (NASDAQ:MULN) and Vodafone (NASDAQ:VOD) stock today. You can read that news at the following links!
More Monday Stock Market News
- Dear CLVS Stock Fans, Get Ready for a Bankruptcy Filing
- CEO David Michery Just Received 28 Million Shares of Mullen (MULN) Stock
- VOD Stock Alert: What to Know as Vodafone Says Goodbye to CEO
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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