NEW YORK (AP) -- Shares of Box Ships fell 10 percent on Wednesday as the shipping company priced a public offering of 4 million shares at an 8 percent discount to its most recent closing price.
The Greek company priced the offering at $5.25 per share. The stock closed at $5.73 on Tuesday.
Box Ships Inc. is giving the underwriters a 30-day option to buy an additional 600,000 shares to cover any excess demand.
Gross proceeds, before the underwriting discount and other expenses, are expected to be about $21 million. The company anticipates using the offering's net proceeds for general corporate purposes such as potential vessel acquisitions and the repayment of debt.
The offering is expected to close on Monday.
Box Ships' stock dropped 59 cents, or 10.3 percent, to $5.14 in midday trading Wednesday. Over the past year, the shares have traded between $4 and $9.39. The stock is still up almost 30 percent this year.