Mixed shelf offering for $300 million filed. After the market closed on Friday, a Form F-3 was filed. The mixed shelf offering adds the ability to issue $300 million of equity, preferred and/or debt. We view the shelf offering filing as a formality, or an updated version of the previous shelf offering filing, and do not believe that the any common shares will be issued unless the stock is well above the current stock price. It is also worth noting that financing is already in place to fund the latest acquisitions and the last equity offering was priced at $1.70/share (with no warrant overage) in February so near-term funding and liquidity are good.No financials were included in the shelf offering, but the share count was updated. As of June 30, 2021, there were 168.5 million shares were outstanding, which means that no new shares have been issued since 1Q2021 operating results were released on May 25th.Posion pill adopted. In a separate filing, the Board declared a dividend of one preferred share right on July 2, 2021 payable to record holders as of July 19, 2021. The preferred share right allows the holder to buy 1/1,000th of a preferred share at an exercise price of $5.00. The right is inseparable and not triggered until a shareholder breaches the 10% level (or 15% for passive shareholders) without Board approval. In the case that an existing shareholder owned more than 10% (or 15% for passive shareholders) as of July 2, 2021, the right is triggered if any additional shares are acquired. The preferred share rights are designed to make an hostile takeover/merger more challenging without Board approval.Remain positive on dry bulk market, including Capes. Even though Cape TCE rates were volatile in 2Q2021, we believe that rates are likely to move higher in 2H2021. Once the last acquisition closes in 3Q2021, the Cape fleet will increase to 16 and operating leverage will be higher, with a $1.0k/day change in Cape TCE rates impacting cash flow/EBITDA by $5.8 million, or ~8% of our current 2021 EBITDA estimate.Maintain Outperform rating and price target of $1.50/share. The risk/reward profile remains favorable, especially after the modest 6% gain in 2Q2021 and loss of 4% in 3Q2021 to date. The expansion of the Cape fleet and a bias toward time charters with indexed rates should help capture upside rate optionality and lower financial leverage by yearend 2021. Read More >>