Seeking Alpha

Safe Bulkers in 5M-share public offering, 1M-share private placement

  • Safe Bulkers (SB) -9.2% AH after announcing a public offering of 5M common shares and a concurrent private placement of 1M common shares through an entity associated with CEO Polys Hajioannou.
  • SB plans to use the proceeds for vessel acquisitions, capital expenditures, debt repayment and other general corporate purposes.
Comments (2)
  • Philip Marlowe
    , contributor
    Comments (854) | Send Message
     
    I feel very stupid after I have been posting on here for a couple of months that SB will be the only bulk shipper that will not dilute. I guess I was wrong. They really disappointed me. My theory was they would not dilute because the CEO owns a lot of shares. But it seems the CEO is just going to buy a portion of the newly issued shares.

     

    They had a very good quarter just now, but this just ruins it. They had a chance to distinguish themselves from the other shippers, but they blew it. This offering will cost them a lot.
    12 Nov 2013, 11:11 PM Reply Like
  • Nukedinvestor
    , contributor
    Comments (6) | Send Message
     
    Don't feel stupid! You're just being taken advantage of... by insiders and wall street. I feel for you... but the top tick on Nov 5th was a big clue... I was fortunate to exit on a stop limit sell order. Phew!
    13 Nov 2013, 12:07 PM Reply Like
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