DryShips Inc. (NASDAQ: DRYS) is having an incredible day in the market today, and for good reason. Lately, there's been a lot of pressure on the company from the media with regard to their dealings with Kalani Investments. Well, this pressure seems to have led to a change. Of course, this is exciting investors, leading to gains in the stock and prompting our partners at Trade Ideas to alert us to the movement. At the moment (8:39), DRYS is trading at $3.80 per share after a gain of $1.75 per share (85.37%) thus far today.
DRYS Announces News With Regard To Kalani Investments
If you follow DryShips, you know the name Kalani Investments. Oftentimes, the company will sell shares to Kalani, who then dumps them on the public. Dilution at its finest. Nonetheless, news broke today with regard to dealings between DRYS and Kalani Investments.
In a press release, DRYS announced that in connection with proposed transactions announced with regard to Kalani Investments, the company has terminated the common stock purchase agreement dated April 3,2017. This termination is effective immediately. Also, CEO George Economou has agreed, either directly or through his affiliated entities, to refrain from re-selling, for six months, any shares acquired by him in the proposed transactions. The company has also agreed not to conduct any equity offerings until after December 31st, 2017, without the prior approval of the majority of its shareholders.
A Move In The Right Direction
Throughout my coverage on DryShips, I have been concerned about Economou and Kalani Investments. While this does not solve the problem of Economou funneling investor money through his own small businesses and into his pockets, it will stop the bleeding with regard to Kalini Investments and any other equity offering that would have taken place through the remainder of this year. So, DRYS does seem to be moving in the right direction here.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on DRYS. In particular, we're interested in watching to see if we start to see a complete turn around by the company's management. Instead of funneling investor money into their pockets, the company may start doing right by investors. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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