Business
Euroseas Ltd. Announces the Acquisition of Four 4,250 teu Containerships Further Expanding and Renewing its Fleet; and a Private Placement of $6 million of Common Stock
MAROUSSI, ATHENS, Greece, Nov. 18, 2019 (GLOBE NEWSWIRE) -- Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container
About this update from Euroseas Ltd.
[{"type":"text","content":"MAROUSSI, ATHENS, Greece, Nov. 18, 2019 (GLOBE NEWSWIRE) -- Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, today announced that it has entered into agreements to acquire four 4,253 teu containerships built in South Korea, three in 2009 and one in 2008.\n The vessels are being acquired from companies controlled by Synergy Holdings Limited for a total consideration of approximately $40 million. The acquisition will be financed by bank debt, existing funds of the Company and $6 million raised in private placements. The Company will also assume the charters the vessels are currently under. As part of the transaction, the Company has agreed to acquire certain management services of Synergy Marine Limited for the next three years. Mr. Andreas Papathomas, Chairman of Synergy Holdings Limited, has joined the Board of Directors of the Company. The Company has also agreed to issue an additional $0.5 million in shares of its common stock to Synergy Holdings Limited if certain conditions are fulfilled in one year. One of the vessels was delivered to the Company today while the remaining three are expected to be delivered within a week subject to certain closing conditions being met. Fearnley Project Finance AS acted as an advisor in the transaction. The private placements of $6 million of common stock are subscribed equally by Synergy Holdings Limited and Eurobulk Marine Holdings Inc. (a company affiliated to the Company’s CEO). As the result of the private placements, the Company will have issued approximately 8.45 million new common shares at a price of $0.71 per share representing about 19% of the Company’s ownership after the acquisition. Euroseas believes that the addition of the four vessels will add in excess of $5 million to the Company’s EBITDA over the next twelve months and reduce the average age of its fleet by approximately 2 years. After the acquisitions, the fleet of the Company will reach 19 units which are all, except one, feeder and intermediate containerships, further highlighting the positioning of the Company as the only publicly listed company focusing on the feeder and intermediate containership sector. In parallel with the vessel acquisition, the Company announced that its vessel M/V Akina...