Robin Energy Ltd. (NASDAQ:RBNE) shares fell sharply in Thursday’s after-hours session after the company announced a proposed public offering of common shares through a preliminary prospectus filed with the U.S. Securities and Exchange Commission.
Robin Energy shares closed Thursday’s regular session up 27.35% at $5.68, before dropping 28.49% in after-hours trading to $4.06.
Robin Energy is an international shipping company that owns and operates liquefied petroleum gas (LPG) carrier vessels and tanker vessels.
Public Offering Sparks Selling Pressure
The company filed a preliminary prospectus for a public offering of common shares, although it has not yet disclosed the number of shares to be sold or the offering price. The filing also grants underwriter Maxim Group LLC a 45-day option to purchase additional shares to cover over-allotments.
Robin Energy said it intends to use the net proceeds for capital expenditures, working capital, vessel and other asset acquisitions, construction of new vessels and other general corporate purposes. The company noted it has not yet identified a specific acquisition or allocated the proceeds to any single use.
Robin Energy also warned that future issuances of common shares, including potential conversions of its Series A Preferred Shares and additional sales under its existing at-the-market (ATM) program, could result in significant shareholder dilution and pressure the stock price.
Trading Metrics
Robin Energy has a market capitalization of approximately $3.31 million, with a 52-week high of $374.25 and a 52-week low of $3.60.
Over the past 12 months, RBNE shares have declined approximately 97.61%.
Benzinga Edge Stock Rankings show negative price trends across the short-, medium- and long-term time frames.
Photo: Who is Danny / Shutterstock
Login to comment