Euroseas plans fundraiser and reverse stock split, wins boxship timecharter
Athens: NASDAQ-listed Euroseas is planning a new stock offering through which it will fund its newbuilding programme, and will separately undertake a 1-for-10 reverse stock split to boost its share price.
Euroseas’ small container vessel Ninos (1,149 teu, built 1990) has also been fixed on a one-year timecharter to an unnamed party at a daily rate of $11,500.
The company plans to raise funds through a registered offering of subscription rights to its shareholders by which they will be able to purchase a certain number of Euroseas’ common shares. Each shareholder who exercises their basic subscription privilege may also subscribe for a certain number of additional shares.
The date of the offering and the number of rights to be issued have yet to be announced. The rights are expected to be tradable.
“We are executing our plan of growing the company and making its stock more attractive for our shareholders and investors amidst a challenging market environment. In that respect, we have filed a registration statement with the SEC to pursue a registered rights offering, which we believe allows us to raise funds in the least dilutive way for our shareholders to ensure that we can comfortably complete our dry bulk newbuilding program of two ultramaxes and two kamsarmaxes,” said Aristides Pittas, Euroseas’ chairman and CEO, in a statement.
“We believe that continuing to invest in the drybulk sector at one of the lowest historical levels observed is a very attractive opportunity. At the same time we are encouraged by the recent strengthening of the containership market as evidenced by the recent charter renewals. We continue to believe that we are well positioned to benefit from recovery of the drybulk market over the next one to two years and the continuing strength of the containership market.”
Separately, Euroseas is to start a 1-for-10 reverse stock split that will aim to boost the company’s share price to above the minimum $1.00 per share required to meet the terms of the stock’s NASDAQ listing.
The split will be effective at the close of trading on July 31; Euroseas shares will begin trading on a split-adjusted basis on August 3.
