NEW YORK (TheStreet) -- Top Ships (TOPS) stock is plummeting Friday after the company priced an underwritten offering of 10 million shares of common stock and warrants to purchase 5 million common shares, at $2 per share and $0.000001 per warrant.
The warrants have an exercise price of $2.50 per share, are exercisable immediately, and will expire five years from the date of issuance.
Underwriters have also been granted a 45-day overallotment option to purchase up to an additional 1.5 million shares or 750,000 warrants.
The offering, expected to close June 11, will likely generate gross proceeds of just over $20 million.
"Net proceeds of this offering are expected to be used to finance part of Top Ship's contractual commitments in relation to its fleet and for working capital and general corporate purposes," the company said in a statement.
Aegis Capital Corp will act as sole book-running manager of the offering.