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Euroseas greenlights share offering, buys small boxship

Euroseas’ board has authorised an at-the-market (ATM) offering of up to 15% or around 1.22m of its 8.1m outstanding shares, according to its results for the first half of 2016.

The tranche would raise $2.69m if sold at the company’s current share price of $2.21, but Euroseas’ CEO said the execution of the ATM depends on market conditions and investor appetite.

“Lately, we have seen an increased interest in our stock evidenced by a very significant increase in the trading liquidity. This is, of course, very positive and we hope it continues. The ATM that our board approved is intended to facilitate new investors to participate in the company and help keep the trading liquidity high, something essential for the longer term good of our shareholders,” Aristides Pittas, Euroseas’ chairman and CEO (pictured), said in the report.

“As we are not facing any cash needs, we may or may not execute fully on the ATM depending on whether we deem this would help our trading liquidity or assist in further vessel acquisitions or renewals.”

Meanwhile, Euroseas has agreed to buy the small containership Aegean Express (1,439 teu, built 1997) for $3m from Icon Capital Corp.

The fully cellular vessel will replace Captain Costas (1,742 dwt, built 1992), which the NASDAQ-listed shipowner sold in the second quarter.

Brokers reported in April that the small vessel had been sold for scrap in India at a price of $331/ldt or around $2.8m in total.

“We are now focused on how to take advantage of the low vessel price environment and find opportunities to expand and renew our fleet,” Pittas commented.

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Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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