Note 3 - Equity Offerings

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

3.

  Equity Offerings

Preferred Stock Private Placement

On

May

26,

2016,

the Company entered into a Preferred Stock Purchase Agreement (the “Preferred Stock Purchase Agreement”) with certain investors named therein, including certain of our existing shareholders and our Chairman and Chief Executive Officer (the “Purchasers”), pursuant to which the Company agreed to issue to the Purchasers in a private placement (the “Private Placement”) pursuant to the private placement exemption from registration under Section

4(a)(2)

of the Securities Act and Rule

506

of Regulation D promulgated under the Securities Act, shares of the Company’s

15%

Cumulative Nonparticipating Redeemable Series A Preferred Stock, par value

$0.01

per share (the “Series A Preferred Stock”), at a purchase price of

$1,000.00

per share with a

1.0%

original issue discount, for aggregate gross proceeds expected to amount to approximately

$6.3

million.

On

September

7,

2016,

the Company and each of the Purchasers executed the Termination Agreement, terminating the Preferred Stock Purchase Agreement. The Company agreed to make an aggregate termination payment to the Purchasers of

$125,255,

which is allocated among the Purchasers in proportion to the percentage of the shares of Series A Preferred Stock each Purchaser had previously agreed to purchase. The fees paid to the shareholders were recorded as other expense in the consolidated statement of operations for the year ended

December

31,

2016.

Common Stock Offerings

On

July

1,

2016

and

July

10,

2016,

respectively, the Company entered into Common Stock Purchase Agreements (collectively, the “Common Stock Purchase Agreements”), with certain purchasers (the “Common Stock Purchasers”). The Common Stock Purchasers include certain of our existing shareholders, who held approximately

70%

of our outstanding equity prior to entry into the Common Stock Purchase Agreements and prior to giving effect to the delivery of all of the shares of common stock issued in connection with the Second Lien Loan Agreement, as well as our Chairman and Chief Executive Officer. The Common Stock Purchase Agreements provided for the issuance and sale by the Company to the Common Stock Purchasers of an aggregate amount of

$88

million of common stock, at an initial price per share of

$0.15,

which amount per share was increased to

$3.00

per share based on the reverse stock split ratio of

1

-for-

20

that became effective as of the opening of trading on

August

5,

2016.

On

August

10,

2016,

the Company closed the transactions contemplated by the Common Stock Purchase Agreements for aggregate proceeds of

$85

.7

million net of fees and legal expenses. After giving effect to the Company’s previously announced reverse stock split of its issued and outstanding shares of common stock, including the rounding down of fractional shares pursuant to such split, the private placement included the issuance of

29,333,318

shares of the Company’s common stock. The Company intends to use the proceeds of the private placement for the acquisition of dry bulk vessels and general corporate purposes.

On

December

13,

2016,

the Company entered into a Stock Purchase Agreement with certain investors (the “Investors”), pursuant to which the Company agreed to issue to the Investors in a private placement (the

“December

Private Placement”) approximately

22.2

million shares of the Company’s common stock, par value

$0.01

per share, at an initial purchase price of

$4.50

per share, for aggregate gross proceeds of

$100.0

million. On

January

20,

2017,

the Company closed its previously announced

December

Private Placement for aggregate net proceeds of 

$95

million.  The Company plans to use the proceeds from the

December

Private Placement for the acquisition of dry bulk tonnage and general corporate purposes.

Authorized Shares and

Reverse Split

On

August

2,

2016,

the Company held a Special Meeting of Shareholders where the shareholders approved, among other things, to increase the number of authorized shares of the Company’s common stock, from

150,000,000

to

700,000,000

and establish the number of authorized shares of preferred stock, par value

US$0.01

per share, at

25,000,000

shares.

On

August

5,

2016,

the Company effected a

1

-for-

20

reverse stock split of its issued and outstanding shares of common stock. Upon the effectiveness of the reverse stock split, every

20

shares of issued and outstanding common stock for the Successor were combined into

one

issued and outstanding share of common stock, with no change in par value per share

. The impact of the reverse stock split has been retrospectively applied to all Successor periods in the consolidated financial statements.