DryShips' Stock Plummets After Stock-sale Deal, Ship Purchases

Shares of DryShips Inc. plummeted 17% in morning trade Monday, after the operator of cargo ships announced a private offering of up to $226.4 million worth of its shares, and a deal to buy six vessels. The company said it may sell the common stock to Kalani Investments Ltd., over the next 24 months. Kalani does not have the right to require the company to sell its shares, and is obligated to buy the stock as directed by DryShips. The company has also agreed to issue up to $1.5 million of its common stock as a commitment fee. Separately, DryShips said it was buying six vessels for $268 million, on built in 2012, two built in 2014 and three currently under construction. The stock has plunged 95% year to date, while the S&P 500 has gained 5.6%.