03.18.10 TimelessWealth.net: Bulk Transporter Raises Cash, Terminates Stock Offering Program.
OceanFreight Inc. (NASDAQ: OCNF) revealed on Thursday that the company had terminated their financing agreement with YA Global, an affiliate of Yorkville Advisors LLC where “[…]the Company had the option to issue and sell shares worth up to $450 million.” The announcement further stated that “the Company raised approximately $99.7 million of gross proceeds”. While the agreement was still in place, OceanFreight’s price per share (PPS) declined more than 50% in a six-month period.
OceanFreight Inc. may appeal to investors after being discounted during their ‘offering’ activities. The Company will now have the opportunity to employ $99.7M towards settlement of debt, financing of operating activities, and ultimately the enhancement of shareholder value.
Shares of OceanFreight Inc. rebounded off a 52-week low ($0.70) in early February. Since that period, the price has thrice tested support suggesting a bullish triple-bottom chart pattern. Below, TimelessWealth.net Staff have identified an ‘entry’ strategy.
In early March the Company announced it would take action to regain NASDAQ listing compliance by suggested a reverse stock split. The Company’s primary goal appears to be reinstating shareholder value to levels prior to their stock offering. OceanFreight’s 52-week high in May of 2009 was $2.10/share.
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