GLBS Stock Price Fell 26.53%: Why It Happened

By Amit Chowdhry ● Jun 26, 2021
  • The stock price of Globus Maritime Ltd (NASDAQ: GLBS) fell by 26.53% yesterday. This is why it happened.

The stock price of Globus Maritime Ltd (NASDAQ: GLBS) fell by 26.53% yesterday, going from a previous close of $5.54 to $4.07. Investors responded negatively to Globus Maritime Limited announcing that it has entered into a securities purchase agreement with certain unaffiliated institutional investors to issue 10 million of its common shares (or pre-funded warrants in lieu thereof) and purchase warrants to purchase up to an aggregate of 10 million common shares at a purchase price of $5.00 per common share and accompanying purchase warrant (or $4.99 per pre-funded warrant and accompanying purchase warrant) in a registered direct offering. 

The purchase warrants are going to have an exercise price of $5 per share, are exercisable immediately, and will expire 5 and a half years following the date of issuance.

The gross proceeds to the company from the offering are estimated to be approximately $50 million (assuming full exercise of all pre-funded warrants) before deducting the placement agent’s fees and other estimated offering expenses. And the offering is expected to close on or about June 29, 2021, subject to the satisfaction of customary closing conditions.

Maxim Group LLC is acting as sole placement agent for the offering.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.