TOP Ships Inc. Announces Pricing of $13.6 Million Registered Direct Offering

Rhea-AI Summary

TOP Ships Inc. (NASDAQ:TOPS) has entered into a securities purchase agreement with institutional investors for a registered direct offering of approximately $13.6 million. The offering price is set at $1.35 per unit, each comprising one common share (or pre-funded warrant) and one warrant, which will separate upon issuance. The warrants are immediately exercisable with an expiration of five years at the same $1.35 exercise price. The offering is expected to close around February 16, 2023, pending customary conditions. The company has also reduced the exercise price of existing Class C warrants to $1.35 from $2.00.

Positive

• Offering size of $13.6 million will provide necessary capital for operations.
• Reduced exercise price for existing warrants may encourage investor participation.

Negative

• Dilution of existing shares due to the new offering may negatively impact current shareholders.

ATHENS, Greece, Feb. 14, 2023 (GLOBE NEWSWIRE) -- TOP Ships Inc. (the “Company” or “TOP Ships”) (NASDAQ:TOPS), an international owner and operator of modern, fuel efficient “ECO” tanker vessels, announced today that it has entered into a securities purchase agreement with several institutional investors to purchase approximately $13.6 million of its units in a registered direct offering at a price of $1.35 per unit. Each unit will consist of one common share (or pre-funded warrant in lieu thereof) and one warrant and will immediately separate upon issuance.

The warrants will be immediately exercisable, will expire five years from the date of issuance and will have an exercise price of $1.35 per common share. Additionally, pursuant to the terms of the Company’s existing Class C warrants issued to investors on December 6, 2022, the Company has agreed to reduce the exercise price per common share under these warrants to $1.35 per common share from an original exercise price of $2.00 per common share.

Maxim Group LLC is acting as the sole placement agent in connection with the offering.

The offering is expected to close on or about February 16, 2023, subject to the satisfaction of customary closing conditions.

The common shares (or pre-funded warrants in lieu thereof) and accompanying warrants are being offered pursuant to the Company’s shelf registration statement on Form F-3 (File No. 333-267170), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 13, 2022. The offering will be made only by means of a prospectus supplement that forms a part of such registration statement. A prospectus supplement relating to the offering will be filed by TOP Ships with the SEC. When available, copies of the prospectus supplement, together with the accompanying prospectus, can be obtained at the SEC’s website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or telephone at (212) 895-3745.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About TOP Ships Inc.

TOP Ships Inc. is an international ship-owning company. For more information about TOP Ships Inc., visit its website: www.topships.org.

Cautionary Note Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect” “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

For further information please contact:

Alexandros Tsirikos
Chief Financial Officer
TOP Ships Inc.
Tel: +30 210 812 8107
Email: atsirikos@topships.org

FAQ

What is the size of TOP Ships' registered direct offering in February 2023?

TOP Ships has announced a registered direct offering of approximately $13.6 million.

What is the exercise price for the new warrants issued by TOP Ships?

The new warrants are set at an exercise price of $1.35 per common share.

When is the expected closing date for TOP Ships' securities offering?

The offering is expected to close on or about February 16, 2023.

How does the offering affect existing Class C warrants for TOP Ships?

The exercise price for existing Class C warrants has been reduced to $1.35 per common share from $2.00.

Who is the placement agent for TOP Ships' offering?

Maxim Group LLC is acting as the sole placement agent for the offering.