Sabra Capital Partners, LLC holds a sizeable position in TOP Ships (NASDAQ: TOPS) and believes the shares will appreciate substantially over the next 12-15 months. TOPS announced its intention to reconstitute its fleet in April 2014 by conducting a secondary offering for $30mm. However, given the lack of visibility in the marketplace and the overhang from a drawn out and poor marketing process, the stock drifted lower in the intervening two months. There’s a reason secondaries are generally executed overnight. The company ultimately completed its secondary offering in June 2014 for 10mm shares at $2.00 per share to fund the equity component of its fleet reconstitution. As part of the deal, TOPS also issued 5mm warrants that are exercisable at $2.50 per share for another potential $12.5mm in capital. We participated in the offering and continue to build our position. The company currently trades at 58% discount to its
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