Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Investor Presentation (September 2015)
14 slides from Euroseas's investor presentation, Sep 8, 2015
Slide 1: Shareholders' Rights Offering Information Presentation
Shareholders’ Rights Offering Information Presentation September 8, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may re
Slide 3: Rights Offering Overview
Rights Offering Overview » Raise up to $19.5 million by offering approximately 4.34 million shares at $4.50 per share • Shareholders will receive the right to acquire 3 new shares for every 4 shares they own » All shareholders of record as of August 14, 2015 are eligible to participate • Offering la
Slide 4: Why Raise Equity Now
Why Raise Equity Now » We currently have a fleet growth newbuilding program for 4 vessels costing about $118m • Have ordered 2 Ultramaxes 63,000 dwt and 2 Kamsarmaxes of 82,000 dwt at Chinese yards • Funds in hand are not sufficient to fulfill the program (due to the market deterioration over the la
Slide 5: Why Pursue A Shareholders Rights Offering
Why Pursue A Shareholders Rights Offering » Main reasons we decided to pursue a Rights Offering Vs other equity raising options • No dilution to fully participating shareholders • Alternative fundraising options (follow-ons, ATMs, convertibles, private placements, etc.) could all be potentially more
Slide 6: Asset Values At Historical Lows
Asset Values At Historical Lows 5yr old Secondhand Price 5yr old Secondhand Price Historical Price Range 100 10 0 Max Price, 2000-2014 90 90 Average Price, 2000-2014 80 Min Price, 2000-2014 80 Current Price, Sep-15 70 Averages 2000- 70 2015 60 60 million USD 50 50 40 40 30 30 20 20 10 10 0 0 2000-Ja
Slide 7: Newbuilding Price Development
Newbuilding Price Development 60 Averages 50 2000-2015 40 million USD 30 51K between Oct-99 and May-08; 56-58K until Jan-14, 61-63K thereafter. Monthly Values extend earlier than weekly history 20 10 0 Panamax(*) Supramax/Ultramax(**) Source: Company based on data available from industry sources (*)
Slide 8: Newbuilding Program Capital Expenditures
Newbuilding Program Capital Expenditures » Our four newbuildings will cost about $118m including the cost of additional equipment and supervision during construction – Ultramax 1 in January 2016 and Ultramax 2 in April 2016 – Kamsarmax 1 in January 2016 and Kamsarmax 2 in November 2016 » We expect t
Slide 9: Offering Details: Basic and Oversubscription Rights
Offering Details: Basic and Oversubscription Rights » Existing shareholders have the right to acquire 3 shares for each 4 shares they owned on August 14, 2015 (“basic subscription right”) • We will issue up to a maximum of 4.34 million shares of common stock resulting in up to a maximum of 10.12 mil
Slide 10: Right Offering Economics
Right Offering Economics » If participation in the rights offering is 100%, we will raise $19.5 million gross, or $19.2 million net after offering expenses • Offering expenses will cost amount approximately $0.05 per existing share » Cash as of 6/30/2015 on a pro-forma basis after the offering • Cas
Slide 11: Commitment of Founding Shareholder
Commitment of Founding Shareholder » Our founding shareholder, Friends Investment Company Inc., “Friends”, has given us an indication that • it will exercise its basic subscription privilege in full, and, • likely participate in the oversubscription privilege • Friends owns approximately 1.62 millio
Slide 12: Exercise Mechanics
Exercise Mechanics » We have mailed to shareholders a prospectus and instructions on how to exercise their basic and oversubscription privileges • In general, subscription forms and payment for both basic and oversubscription privilege are due by 5:00 p.m. Eastern Daylight Time on September 17, 2015
Slide 13: Summary
Summary » Over the last 10 years, Euroseas has built a track record of being: • A prudent, value driven company while facing for the last 6 years very challenging market conditions • Focused on creating returns for our shareholders and preserving optionality to benefit from market recovery » Partici
Slide 14: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. c/o Eurobulk Ltd 4, Messogiou & Evropis Street 151 25 Maroussi, Greece www.euroseas.gr euroseas@euroseas.gr Tel. +30-211-1804005 Fax.+30-211-1804097 or, Tasos Aslidis Nicolas Bornozis Chief Financial Officer Investor Relations Euroseas Ltd. Capital Link, Inc. 11 Cante