Home Business Is TOP SHIPS Inc. (NASDAQ:TOPS) Sell-Off Over? Or restarting?

Is TOP SHIPS Inc. (NASDAQ:TOPS) Sell-Off Over? Or restarting?

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TOP SHIPS Inc. (NASDAQ:TOPS) was a big mover in Monday’s trading session even as the shipping company continued to face a wave of class action lawsuits and SEC Subpoenas. The stock was up by 133% after gaining nearly 150% on Friday.


The breathtaking rallies have helped strengthen the share price after the NASDAQ Capital Market hit the company with a non-compliance notice last month. The stock is currently trading above $1, needed for continued listing in the exchange. However, it needs to trade above the minimum requirement for a minimum of 10 days if it is to regain compliance.

Since the start of the month, TOP SHIPS Inc. (NASDAQ:TOPS) has gained more than 250% in market value after bouncing back from all-time lows. However, the stock still has a long way to go as it is still a shadow of itself, given that it was trading at, after taking share dilution into account, $36,540 as early as January.

Stock Dilution Impact

Investor sentiments on the stock took a hit after it emerged that the company’s CEO Evangelos J. Pistiolis might have engaged in a series of manipulative share issuance/sales transactions with Kalani Investments Limited. A number of law firms allege that the CEO caused the company to sell shares and securities convertible into common shares at significant market price.

Kalani Investments reportedly went on to resell the shares into the market – a move that law firms allege caused Top Ships share price to drastically decline. Top Ships went on to carry out a number of reverse stock splits in a bid to shore up the stock price. The same pattern of transactions occurred more than once according to Lundin Law P.C

“While Top Ships was engaging in these transactions, the Company failed to disclose the true purpose of the transactions and related stock issuances and reverses – to finance related-party transactions and acquisitions that primarily benefited Mr. Pistiolis and his related companies,” Lundin Law PC in a statement.

By August, TOP SHIPS Inc. (NASDAQ:TOPS) had reportedly issued tens of millions of shares through Kalani, vastly diluting existing shareholders. In its lawsuit, Lundin Law PC alleges that a good chunk of proceeds from the offering went on to enrich Mr. Pistiolis and his affiliates.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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