Greek owner Euroseas has received the relevant approvals for its EuroDry spin-off, which will be listed on the NASDAQ Capital Market under the symbol EDRY from May 30.
Euroseas shareholders will receive one share of EuroDry for every five shares they own in Euroseas.
Aristides Pittas, chairman and CEO of Euroseas, commented: “We are extremely excited with the spin-off and separate listing of our drybulk fleet into a separate publicly listed company, EuroDry Ltd. As we stated in our recent earnings call, we believe that this separation will unlock the value inherent in our fleet which is currently trading at a significant discount to its net asset value (“NAV”). We believe that by forming “pure” play companies we can more easily be compared to our peers and this is expected to result in a significant increase in our value for our shareholders as our sector-focused companies should trade closer to their NAV.”
After the spin-off is completed, EuroDry will own a fleet of six vessels made up of three panamaxes, two kamsarmaxes, and an ultramax while Euroseas will own eleven feeder boxships.
“We plan to take advantage of growth opportunities, as they may arise, in each of the two sectors to increase the size of each respective company as we believe that they are both well positioned to do so both in terms of their capital structure and their contract mix. Each of them being a public company with a cost-effective operating structure could be attractive to other small or large private fleets looking for opportunities to grow and obtain a public listing,” Pittas added.