DryShips Plans Sale Of $100 Million Worth Of Stock To Group Affiliated With CEO

DryShips Inc. said Friday it has approved the sale of $100 million worth of its common stock at $2.75 a share to entities affiliated with Chief Executive George Economou. The price represents a 34% premium to Thursday's closing price of $2.05. The shipping company said it also approved a rights offering allowing shareholders to buy their pro rata portion of up to $100 million worth of stock at $2.75 each. The company plans to use the proceeds from the rights offering will be used for general corporate purposes, vessel acquisitions or to pay down debt. The stock was halted in the premarket for news. It has plunged 99% over the past three months, while the S&P 500 has gained 1.8%. The stock has undergone five reverse stock splits so far this year, effectively increasing the price of each share by a multiple of 7,840.