Seanergy Maritime’s common stock begin trading on a 1-for-5 reverse stock split-adjusted basis on the NASDAQ Capital Market when trading commences on Friday.
Shareholders voted in September 2014 to approve a reverse stock split of up to 1-for-15 shares. The company’s board approved a 1-for-5 split on December 22, 2015.
The reverse split will reduce the number of outstanding shares of Seanergy’s common stock from 97,612,971 shares to approximately 19,522,594 shares by consolidating every five issued and outstanding shares into one.
Seanergy has until January 25 to boost its share price to above NASDAQ’s minimum $1.00 per share bid price requirement or face being delisted from the stock exchange.
Its stock has been trading at below this minimum level since July 21, 2015 and, at the time of writing, is trading at $0.66 per share.
The Athens-based company received a notice of non-compliance from NASDAQ on July 28, 2015, granting the Seanergy a time extension beyond the usual 180 days in which to regain compliance with the minimum share bid price requirement.
“The dry bulk market is experiencing one of the worst crises of the last 25 years. However, the depressed markets usually represent unique opportunities for acquisitions of quality tonnage. We strongly believe that our fleet expansion represents an opportunity to participate in a market recovery,” Stamatis Tsantanis, Seanergy’s chairman and CEO, said in the company’s third-quarter 2015 financial results on December 17.
“Our acquisition cost, which is among the lowest of our peers, together with our financing arrangements provide significant potential for our investors. We will continue to cautiously pursue acquisition opportunities that we believe can further enhance value for our shareholders.”
In August, Seanergy purchased five capesize and two supramax bulk carriers from Enterprises Shipping & Trading for around $183m.