Stock Update (NASDAQ:GLBS): Here’s Why Globus Maritime Ltd Shares Are Falling 15%
Globus Maritime Ltd (NASDAQ:GLBS) investors are having a rough day after the dry bulk shipping company announced that it will issue for gross proceeds of $5 million, an aggregate of 5 million shares of common stock, par value $0.004 per share and a warrant to purchase 25 million shares of common stock at a price of $1.60 per share, in a private placement to an unspecified private investor. The company intends to use the proceeds from the sale of common shares and warrant for general corporate purposes and working capital including repayment of debt.
The public offering would dilute shareholders’ investments, and as such Globus Maritime shares are currently dropping nearly 15% to $3.23 in early trading Tuesday. GLBS has a 1-year high of $23.60 and a 1-year low of $0.20. The stock’s 50-day moving average is $2.39 and its 200-day moving average is $2.30.
Globus Maritime Ltd. is a holding company, which engages in the provision of marine transportation services. Through its subsidiaries, it owns, operates, and manages a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes on a worldwide basis. The company was founded by Georgios Feidakis and Georgios Karageorgiou on July 26, 2006 and is headquartered in Athens, Greece.