Shares in Eagle Bulk Shipping Inc. (NASDAQ:EGLE) fell sharply on Tuesday, down some 34%, and at their lowest since January 2013 in what looks to be a continued selloff six days after the company filed with the SEC its entry into a material definitive agreement.

In the filing, dated July 2, the company said that it and certain of its lenders had entered into Amendment No. 1 To Warrant Agreement, to amend certain of the terms of the Warrant Agreement, dated June 20, 2012. In the June 20 agreement, the company issued warrants convertible on a cashless basis into shares of the company’s common stock, par value $0.01, at a strike price of $0.01 per share of common stock.

One-third of these warrants were exercisable immediately on the issue date thereof, the next third of the warrants were exercisable when the price of the company’s common stock reached $10.00 per share -subject to certain customary adjustments in the event of stock splits, reverse stock splits and certain distributions to all holders of common stock- or when certain other events occurred. These were called the Trigger Price B Warrants.

The last third of the warrants were exercisable when the price of the company’s common stock reached $12.00 per share, subject to the adjustments, or when certain other events occurred. These were referred to as the Trigger Price C Warrants.

The Warrant Amendment, outlined in the most recent July 2 2014 SEC filing, eliminated conditions restricting the exercise of the Trigger Price B Warrants and the Trigger Price C Warrants held by lenders under the Credit Agreement, such that all such Lender Warrants were made immediately exercisable.

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