DryShips Inc. (NASDAQ:DRYS) stock was soaring today on news of a court ruling in its favor.
DryShips Inc. has announced that the High Court of the Marshall Islands has issued a denial to a preliminary injunction from plaintiff Michael Sammons. The motion that Sammons was seeking was to suspend the company from making further issuances of new common shares that are below a certain price.
The High Court of the Marshall Islands made its decision after hearing arguments from DryShips Inc., its Chairman, President and CEO, George Economou, as well as a panel representing Sammons. The court is giving the defendant until Aug. 18, 2017 to respond to the complaint. DRYS is planning to file for a dismissal to the complaint.
The increase in DRYS stock also comes after a rough day for the stock. A one-for-seven reverse stock split went into effect for DryShips Inc.’s stock on Friday, July 21, 2017. The reveres stock split saw the company’s stock reaching incredible high and lows on Friday and had it coming in down 28% that day.
DryShips Inc. is likely planning to continue with more reverse stock splits. As such, DRYS stock will probably continue to be volatile. The increase of its stock today and news that it the High Court of the Marshall Islands has ruled in its favor on future issuances of new common shares adds credit to this idea.
DRYS stock was up 9% as of noon Monday, but is down 99% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.