Why TOP Ships Shares Are Getting Hammered

TOP SHIPS Inc TOPS shares are trading lower by 44.8% to $0.91 Tuesday afternoon after the company announced pricing of a $13.6 million registered direct offering. The company on Monday entered into a time charter employment contract, after which the stock ran higher.

What Happened Monday?

TOP Ships says the new time charter will commence immediately after the expiry of the present time charter employment contract in the first-quarter of 2024 and will have a firm duration of 3 years with an additional year at the charterer's option.

TOP Ships says the revenue backlog expected to be generated by this fixture is about $22.4 million for the firm period and about $30.6 million if the charterer exercises the option to extend for one additional year.

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Evangelos Pistiolis, the President, Chief Executive Officer and Director of the Company, said: "We are very happy to have concluded this new fixture of M/T Eco Marina Del Rey more than a year ahead of the expiry of its present employment and at a daily rate which is about 36% higher than the current rate, thereby taking advantage of the strong rates prevailing in the current tanker market.

"After considering this fixture, the total gross revenue backlog for the firm time charter period of our operating vessels, as of December 31, 2022, stands at about $259 million, increasing to about $280 million when adding the 50% of our joint venture vessels," Pistiolis stated.

According to data from Benzinga Pro, TOP Ships has a 52-week high of $32.80 and a 52-week low of $0.86.