International shippers have simply been taking a pummeling month after month. The pounding of TOP Ships Inc. (NASDAQ:TOPS) was rough enough since March and accelerated even more in the last four trading days, making it one of the worst performing Nasdaq-listed stocks on a daily basis since last Wednesday.
Things weren't any better on Monday following the company agreeing to a note purchase agreement with Xanthe Holdings Ltd. pursuant to TOP Ships intending to issue an unsecured promissory note in the original principal amount of $5.0 million to Xanthe. TOPS says it needs the cash for general corporate purposes and asset acquisitions.
The company finds itself diluting to raise capital at rock bottom prices, which is sending investors jumping ship, spiraling the stock lower. The company had previously agreed to a $40 million financing with Kalani, which partially through selling shares to Kalani ($18.5 million worth) diluted the outstanding share count by about 25%.
On May 11, TOPS did a 1-for-20 reverse split. On a split-adjusted basis, shares were as high as $99.00 in February, $50.00 in March and $22.00 in April.
