DryShips Inc. (NASDAQ:DRYS) announced that its Board of Directors has determined to effect a 1-for-5 reverse stock split of the Company’s issued common shares. At the Company’s annual general meeting of shareholders on May 2, 2017, the Company’s shareholders approved the reverse stock split and granted the Board, or a duly constituted committee thereof, the authority to determine the exact split ratio and proceed with the reverse stock split.

The reverse stock split will take effect, and the Company’s common shares will begin trading on a split-adjusted basis on the Nasdaq Capital Market as of the opening of trading on June 22, 2017 under the existing trading symbol “DRYS”. The new CUSIP number for the common shares following the reverse stock split is Y2109Q 606.

When the reverse stock split becomes effective, every five shares of the Company’s issued common stock will be automatically combined into one share of common stock. As of the date of this press release, the Company had 24,066,342 common shares issued and outstanding. Effecting the reverse stock split will reduce the number of issued and outstanding common shares to approximately 4.8 million shares.

No fractional shares will be issued in connection with the reverse split of the issued common shares. Shareholders who would otherwise hold a fractional share of the Company’s common shares will receive a cash payment in lieu thereof at a price equal to that fraction to which the shareholder would otherwise be entitled multiplied by the closing price of the Company’s common shares on the Nasdaq Capital Market on June 21, 2017.

In reaction, DryShips shares are falling nearly 30% to $1.24 in Monday’s trading session.

DryShips engages in ocean transportation services for drybulk and petroleum cargoes. The company operates its business through three segments: Drybulk and Offshore support. The Drybulk segment provides drybulk commodities transportation services for the steel, electric utility, construction and agri-food industries, which consists transportation and handling of Drybulk cargoes through ownership and trading of vessels. The Offshore Support segment consists of offshore support services to the global offshore energy industry through the operation of a diversified fleet of offshore support vessels.