It’s a very rewarding trading day for investors in DryShips Inc. (NASDAQ:DRYS) with shares up nearly 70%, making the stock Wall Street’s bull of the day. The reason? The dry bulk shipping company announced that it has terminated the common stock purchase agreement with Kalani Investments. As a reminder, DryShips has entered into a number of deals to sell shares to Kalani and has been using Kalani to push out large numbers of common shares to the public since late last year. This has decimated the share price and DryShips has enacted a number of reverse splits.

In addition, DryShips announced this morning that the audit committee of the Company’s board of directors has approved a binding term sheet pursuant to which the Company will sell the Company’s common shares to entities affiliated with its Chairman and Chief Executive Officer, Mr. George Economou, for aggregate consideration of $100 million at a price of $2.75 per share, which represents a 34% premium to yesterday’s closing price.

The cash proceeds from the Rights Offering are expected to be used for general corporate purposes and/or vessel acquisitions and/or to repay amounts outstanding under the Sierra Credit Facility. The consideration for the Company’s common shares issued to Sierra in the Rights Offering as part of the backstop will be the repayment of amounts outstanding under the Sierra Credit Facility.

DryShips, Inc. 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.