Top Ships - More Painful Dilution For Common Shareholders - Stay Away

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About: Top Ships Inc. (TOPS)
by: Henrik Alex
This article is exclusive for subscribers.
Henrik Alex
Momentum, event-driven, short-term horizon, tech
Summary

Diving into ugly details of Thursday's financing transaction.

So-called "cashless exercise" feature effectively reduces the offering price for investors by almost 30% while substantially increasing dilution for common shareholders.

Updating on the massive, additional dilution potential of the Series E Convertible Preferred Stock owned by the company's controlling shareholder.

Don't touch Top Ships with a ten foot pole as the same old pattern of dilution and reverse splits to the benefit of the controlling shareholder will likely continue for the time being.

Note:

I have covered Top Ships (NASDAQ:TOPS) previously, so investors should view this as an update to my earlier articles on the company.

Shares of small, Greece-based tanker operator Top Ships cratered on