NEW YORK (TheStreet) -- Five Oaks Investment Corp (OAKS) stock is moving 4.8% lower to $11.32 on Thursday after announcing and pricing its public offering of 3.5 million shares of common stock. Estimated net proceeds are expected to be approximately $38.25 million.
In a statement, the company said it intends to use net proceeds to "purchase non-Agency mortgage assets (including prime jumbo residential whole loans, other mortgage loans and new issue non-agency residential mortgage backed securities, or RMBS), multi-family MBS, legacy non-Agency RMBS and, to a lesser extent, Agency RMBS."
Underwriters have been granted a 30-day overallotment option to purchase up to an additional 15%, or 525,000 shares of common stock. JMP Securities will act as book-running manager, Ladenburg Thalmann is acting as lead manager, and Mitsubishi UFJ Securities is acting as co-manager for the offering.
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Separately, TheStreet Ratings team rates FIVE OAKS INVESTMENT CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIVE OAKS INVESTMENT CORP (OAKS) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been generally deteriorating net income."