Item 1.01. Entry into a Material Definitive Agreement

On January 20, 2021, Orchid Island Capital, Inc. (the "Company") entered into an underwriting agreement (the "Underwriting Agreement") with J.P. Morgan Securities LLC (the "Underwriter"), relating to the offer and sale of 7,600,000 shares of the Company's common stock, par value $0.01 per share ("Common Stock"). The Underwriter has agreed to purchase the shares of Common Stock from the Company pursuant to the Underwriting Agreement at $5.20 per share. In addition, the Company granted the Underwriter a 30-day option to purchase up to an additional 1,140,000 shares of Common Stock on the same terms and conditions, which the Underwriter exercised in full on January 21, 2021. Subject to satisfaction of customary closing conditions, the closing of the offering of the 8,740,000 shares of Common Stock (including the 1,140,000 shares of Common Stock being issued pursuant to the Underwriter's option) is expected to occur on January 25, 2021. The Company estimates that the net proceeds to the Company will be approximately $45.3 million after deduction of the estimated offering expenses payable by the Company.

The Company expects to use the net proceeds of the offering to invest in a targeted mix of Agency RMBS and for general corporate purposes. The Company then expects to borrow against the Agency RMBS that it purchases with the net proceeds of this offering through repurchase agreements and use the proceeds of the borrowings to acquire additional Agency RMBS.

The Underwriting Agreement contains customary representations, warranties and covenants by the Company. The Company also agreed to indemnify the Underwriter against certain specified types of liabilities, including liabilities under the Securities Act of 1933, as amended, and to contribute to payments the Underwriter may be required to make in respect of these liabilities. In the ordinary course of business, the Underwriter or its affiliates have engaged, and may in the future engage, in various financing, commercial banking and investment banking services with, and provide financial advisory services to, the Company and its affiliates for which they have and may receive customary fees and expenses.

The shares of Common Stock were issued pursuant to the Company's shelf registration statement on Form S-3 (File No. 333-236144), which was declared effective by the Securities and Exchange Commission on February 10, 2020.

A copy of the Underwriting Agreement is attached hereto as Exhibit 1.1 and is incorporated herein by reference. The foregoing description of the Underwriting Agreement is qualified in its entirety by reference to the full text of the Underwriting Agreement. In connection with the filing of the Underwriting Agreement, the Company is filing as Exhibit 5.1 hereto an opinion of its Maryland counsel, Venable LLP, with respect to the legality of the shares, and is filing as Exhibit 8.1 hereto an opinion of its counsel, Vinson & Elkins L.L.P., with respect to tax matters.




  Item 9.01. Financial Statements and Exhibits




(d)    Exhibits



Exhibit No.                                Description

     1.1          Underwriting Agreement, dated as of January 20, 2021, by and
                among the Company, Bimini Advisors, LLC and J.P. Morgan Securities
                LLC, as the sole underwriter

     5.1          Opinion of Venable LLP, dated January 22, 2021, with respect to
                the legality of the shares

     8.1          Opinion of Vinson & Elkins L.L.P., dated January 22, 2021, with
                respect to tax matters

    23.1          Consent of Venable LLP (included in Exhibit 5.1)

    23.2          Consent of Vinson & Elkins L.L.P. (included in Exhibit 8.1)

     104        Cover Page Interactive Data File (embedded within the Inline
                XBRLdocument)

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