Box Ships Inc. plans to sell $30 million of its common shares in an underwritten public offering.
The news sent shares of the Athens-based shipping company tumbling 16 percent in premarket trading.
Box Ships said it also will grant the underwriters of the offering a 30-day option to buy an additional $4.5 million of its common shares to cover possible over-allotments.
Neige International Inc., a company controlled by Box Ships' CEO, is expected to buy up to 2.6 percent of the common shares sold in the offering at the public offering price.
Box Ships said it plans to use part of the proceeds from the offering to pay back some of the debt that was used to purchase two shipping vessels and for general corporate purposes, which could include the repayment of other debt.
The company has about 16.3 million outstanding shares and a market capitalization of about $132 million before the announcement of the share sale. Its shares debuted on the U.S. market in April 2011 at $12, but have yet to return to that level in the little over a year since. Since the beginning of this year, the shares have lost about 3.1 percent of their value.
Barclays, Credit Suisse and Deutsche Bank Securities are the offering's joint underwriters.
Box Ships shares fell $1.31, or 16.2 percent, to $6.80 in premarket trading.