DryShips on Thursday said it has raised $20 million through a registered direct offering but otherwise cannot explain the meteoric rise in the price of its stock since Donald Trump was elected President.
DryShips, an international owner of drybulk carriers and offshore support vessels, has been the focal point of U.S.-listed shipping stocks’ unprecedented rally since last Tuesday’s election. The company’s shares, which were trading at just $4.56 on election day, shot up 1,500% to over $100 per share by Tuesday before trading of the stock was suspended by NASDAQ amid a request for more information from the company as to what may have caused the spike. Shares of the company’s stock remained suspend throughout the day on Wednesday at a price of $73.
In a press release posted today to its website, DryShips said it entered into a direct offering with Kalani Investments Limited which would raise $20 million in gross proceeds, but was otherwise unaware any news that could have caused the surge in share price.
“Apart from the transaction described in this press release, the Company is not aware of any other news that would result in the increased trading activity of its stock or a fluctuation of its stock price,” the press release said.
The response was apparently good enough for NASDAQ, as the shares resumed trading at 10:35 EST at $45.97. By 1:35 PM EST, the DryShips’ stock price had fallen to $20.97, down more than 71 percent.
Adding to the confusion, the rally of DryShips’ came after the company revealed that it is currently engaged in discussions with its lenders for the restructuring of its bank facilities on Wednesday Nov. 9, the day after the election.
DryShips owns a fleet of 15 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1.1 million tons, and 6 offshore supply vessels, comprising 2 platform supply and 4 oil spill recovery vessels.
DryShips’ common stock is listed on the NASDAQ Capital Market where it trades under the symbol “DRYS.”
As of Thursday the shipping stock rally seemed to be over, with some of the most watched stocks over the past week, including TopShips, Globus Maritime, Euroseas, and Diana Containerships, all down more than 25%.
You can read more about shipping’s unprecedented rally HERE or in the related articles below.