Business
Seanergy Maritime Announces Repurchases of $1.6 Million of Common Shares and Agreement to Acquire a Newcastlemax Vessel through a Bareboat-in Charter
CEO Provides Brief Market Commentary GLYFADA, Greece, July 06, 2023 (GLOBE NEWSWIRE) -- Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”)
About this update from Seanergy Maritime Holdings Corp.
[{"type":"text","content":"CEO Provides Brief Market Commentary\nGLYFADA, Greece, July 06, 2023 (GLOBE NEWSWIRE) -- Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) announced today that it has repurchased 362,161 common shares, or approximately 2% of its issued and outstanding shares, at an average price of approximately $4.35 per share pursuant to its previously announced share repurchase program. The average share repurchase price represents approximately a 11.2% discount from the closing price of July 5, 2023. Moreover, the Company entered into a 12-month bareboat charter agreement with an unaffiliated third party in Japan for a 2011-built Newcastlemax dry bulk vessel of 207,855 dwt built at Nantong COSCO KHI Ship Engineering Co Ltd (NACKS). Pursuant to the terms of the bareboat charter, Seanergy has advanced a down payment of $3.5 million and will pay an additional $3.5 million on delivery of the vessel to the Company, as well as a daily bareboat rate of $9,000 over the charter period. Delivery is estimated to take place between August and December 2023 while at the end of the 12-month bareboat period, Seanergy has an option to purchase the Vessel for $20.2 million. Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated: “Consistent with our commitment to enhance shareholder value, we have repurchased approximately 2% of our outstanding shares. We continue to be very confident in our Company’s prospects and the industry’s fundamentals. “The bareboat-in agreement for our first Newcastlemax vessel expands our presence in the sector, without substantial capital outlay on its delivery, and provides a purchase option at the end of the bareboat period. We believe the overall purchase price of approximately $30.5 million, including the bareboat payments, is beneficial to the Company. “Regarding current market conditions, we see that demand for seaborne transportation of dry bulk commodities is very robust. DWT-miles have grown by 5.8% year-on-year1, while the relevant figures from January until the end of May are the strongest of the last three years. “We believe current freight-rate weakness is due to three main factors: First, the unwinding of vessel congestion has released a significant amount of tonnage in the market creating a temporary oversupply of vessels. We believe that later in the year this will ...