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TOP Ships sinks after deeply discounted offering, giving up last week's gains

TOP Ships (NASDAQ:TOPS) -53% in Monday's trading, at one point crashing more than 60% to a record low $1.73, after pricing a public offering of 6.75M units at $2 each, less than half its Friday closing price of $4.44.

Each unit consists of one share and one class C warrant to buy one share, and will immediately separate upon issuance.

The sharp reversal comes after TOP Ships' stock price more than doubled during the previous three sessions on very heavy volume, even after the tanker company disclosed in an updated preliminary prospectus Thursday that it planned to sell as many as 4.97M units containing stock and warrants.

TOP Ships (TOPS) shares have plunged 89% YTD and during the past year.

Seeking Alpha contributor Sabra Capital Partners called TOP Ships (TOPS) "a casino stock with no value" in an analysis published earlier this year on Seeking Alpha.