TOP SHIPS Inc (NASDAQ: TOPS) is flying early on in the market this morning, and for good reason. The company provided a corporate update that shows that management interests may be aligning with those of investors. Today, we’ll talk about:
- The corporate update;
- what we’re seeing from TOPS stock as a result; and
- what we’ll be watching for ahead.
TOPS Announces Corporate Update
As mentioned above, Top Ships is flying early on in the market this morning after company announced an update with regard to financing and corporate activity. In a press release issued early this morning, TOPS announced that it is terminating the equity distribution agreement with Maxim Group LLC providing for the “at-the-market” equity offering program.
The company also announced that it is currently in discussions with financial institutions and has received indicative terms surrounding the financing of the M/T’s Eco California, Eco Bel Air and Eco Beverly Hills. These vessels are expected to be delivered in January, April, and May of 2019 respectively.
In the release, TOPS said that it is close to finalizing an increase in the Family Trading Inc. credit facility. The credit facility is an affiliate of the company’s CEO and controlling shareholder, Mr. Evangelos Pistiolis. Finally, the company said that it is in discussions with its existing senior lenders as well as with other finance providers with an objective to secure additional liquidity.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Top Ships, the news proved to be positive. The cancellation of a transaction that didn’t align well with investor interests and replacement of the transaction with cleaner funding is a positive. So, it’s no surprise that excited investors are sending the stock screaming for the top. At the moment (9:16), TOPS is trading at $1.06 per share after a gain of $0.19 per share or 21.32% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TOPS. In particular, we’re interested in following the story surrounding the company’s continued work to improve its financial condition. Nonetheless, we urge investors to be careful here as TOPS has a relatively checkered past when it comes to management moves aligning with investor interest. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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