DryShips Stock Bounces After Registered Direct Share Offering

Shares of DryShips Inc. ran up 6.2% in premarket trade Wednesday, in the wake of an announcement of a registered direct share offering, a day after they suffered their biggest-ever decline. The Greece-based ocean shipping company said overnight that it entered into an agreement with an institutional investor for the sale of 5,000 new Series C convertible preferred shares, warrants to buy 5,000 convertible preferred shares and about 150,000 common shares. The company expects net proceeds of $5 million, or up to $10 million if all warrants are exercised. On Tuesday, the stock plunged 45%, the biggest one-day percentage decline since the company went public in February 2005, after the company disclosed that it has defaulted on three bank loans. The stock has plummeted 70% year to date through Tuesday, while the S&P 500 has gained 3.3%.