On January 21, OceanPal Inc. (OP) announced an underwritten public offering of US$12.5 million approximately. Consequently, the stock nosedived in the premarket at a heavy volume of 1.3 million shares.
In the previous trading session, the stock varied between a high of $1.4500 and a low of $1.1201. OP stock closed the session with a loss of 20.27% at $1.1800. Following the announcement, the stock subtracted a further 37.28% premarket. Hence, Op was trading at $0.74 per share at the last check, in the premarket session.
The global shipping transportation services provider, OceanPal Inc. has a market capitalization of $13.05 million. Currently, the company has 8.82 million shares outstanding in the market.
OP’s Public Offering
As per the announcement, the company has initiated an underwritten public offering of 15,571,429 units at US$0.77 per unit. Each unit consists of one common stock share and one Class A warrant to buy one common stock share, immediately separated upon issuance.
Additionally, some of the affiliated stockholders with OP are also selling 628,571 common stock shares. Further, these shares will also be sold each combined with one Class A warrant for buying a common stock share.
Moreover, the company’s expected gross proceeds are US$11,990,000, less discounts, commissions, and expenses. The net proceeds from the offering are intended for general corporate purposes along with potential future vessels acquisition. In addition, any of the proceeds from the sale of common stock share from the selling shareholders will not be received by the company.
The expected closing of the offering is on or about January 25, 2022, owing to the customary conditions. And, the sole book-running manager for the offering is Maxim Group LLC.
Additional Option
Along with the original offering, a 45-day option for buying additional 2,430,000 common stock shares is granted by the company and the selling stockholders. Out of these, the first 1,148,577 may be bought from the selling shareholders and the following 1,281,423 may be bought from the company and/or the respective warrants. The price of these additional common stock shares is the same as the original offering.
Recent News
The company’s shares started trading on the Nasdaq Capital Market under “OP” on November 30, 2021. This happened right after the company completed its spin-off from Diana Shipping Inc., on November 29, 2021.
Soon after it started trading on NASDAQ, the company announced a new short-term contract for its Panamax dry bulk vessel, the m/v Calipso, on December 03, 2021.
