TOP SHIPS Inc (NASDAQ:TOPS) has announced that it struck a definitive securities deal with an institutional investor and the agreement will raise roughly $3 million.
Top Ships revealed that the deal will involve the transfer of 3,160 Series B Convertible Preferred Shares that can be converted to Top Ships common shares. The number of common shares to be issued will depend on further adjustments. However, the company already transferred some of the series B convertible preference shares. The shares were transferred on November 22 last year, bringing in roughly $1.5 million.
The series B convertible shares will not be listed on any securities exchange
Top Ship’s Series B Convertible Preferred Shares will not be posted on any public market; hence they will not be listed on any securities exchange market. However, the company’s common shares are listed on the Nasdaq stock market. The firm currently has a total of 5,680,241 common shares including the outstanding and issued common shares.
The impact of the deal on the company’s stock
Though the Series B convertible shares will not be listed on any stock exchange, their impact on the firm is undeniable. Top Ship claims that they might end up causing an adjustment in the firm’s exercise price for the outstanding warrants that were handed out in June 2014.
The fact that the securities will not be listed and that they will be sold via private placement also means they will not be subject to registration under the Securities Act of 1933. Meanwhile, Top Ship’s performance has been impressive. The company’s stocks gained more than 15 percent during after-hours trading on Thursday. As for the 2016 performance, registered $28.43 million in revenue which was a 117.45% year over year increase.
Top Ships also reported a common share net loss of $351,000 equivalent to$0.09 per diluted share. This that was significantly lower than the net loss previous year which was $8.51 or $4.21 per diluted share.