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TOP SHIPS (TOPS) Stock Crashed 60%+ on a $13.5M Capital Raise

Simon Mugo trader
Updated 5 Dec 2022

The  TOP SHIPS Inc (NASDAQ: TOPS) stock price crashed 60.81% after announcing that it had raised $13.5 million by placing 6.75 million units priced at $2 each. Investors reacted negatively to the capital raise due to the significant discount offered to the participating shareholders.

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YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Each of the units offered comprised one common share and one class C warrant that gives the holder the right to purchase one common share in the future. The two units automatically separated after being issued.

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

The class C warrants issued to participating investors are immediately convertible into common shares and will expire five years from today. 

Top Ships owns and operates an international fleet of modern fuel-efficient “ECO” tanker vessels that transport clean and dirty petroleum products and bulk liquid chemicals. Dirty petroleum products are those that are yet to be refined. 

The company has a fleet of 12 vessels with an average fleet age of 1.5 years, an industry best. In addition, the firm’s fleet of tankers is built by Hyundai using the latest technologies, making it a proper eco-friendly fleet. 

Today’s capital raise is the second such raise after the company raised $4.8 million in October via the exercise of warrants by an accredited investor who bought 715,150 of the company’s shares at $6.75 per share. 

The company reduced the conversion price for the accredited investor from $10.00 per share to $6.50 to affect the negotiated deal. The converted warrants were part of a registered share issue concluded in June. 

The frequent capital-raising events conducted by TOP SHIPS do not inspire confidence in the company since they indicate that the firm needs to raise more capital from its operations to fund its activities. 

TOP SHIPS stock has fallen 75.33% this year, and the capital raising could worsen things. 

*This is not investment advice. 

TOP SHIPS stock price. 

Source: TradingView

The TOP SHIPS stock price crashed 60.81% to trade at $1.74, falling from Friday’s closing price of $4.44. 


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading