Odyssey Marine Exploration Inc. shares were down 14% to $2.79 after the company said it entered into subscription agreements with certain institutional investors to buy $16.5 million worth of its common stock and warrants in a registered direct offering.
The stock hit its 52-week low of $2.72 earlier in the session, and closed Tuesday’s session down 10%.
Under the terms of the subscription agreements, the company has agreed to sell 4.9 million units, consisting of one share of stock and one warrant to purchase one share of stock.
The warrants would be exercisable at any time beginning six months after the date of issuance and ending on the fifth anniversary of issuance, and would have an exercise price of $3.35 a share. The purchase price for each unit would be $3.35.
The company intends to use the proceeds from the offering for debt reduction and general corporate purposes.
The offering is expected to close on or about Friday.