Euroseas announces acquisition of feeder containership and private placement of common stock
Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, signed a memorandum of agreement to purchase the M/V RT Dagr, a feeder containership vessel of 1,645 teu built in 1998 in Germany, for approximately 900,000 shares of the Company's common stock. The vessel is expected to be delivered to the Company in December 2016. The vessel will be acquired from an entity controlled by Tennenbaum Capital Partners, a holder of the Company's preferred stock, the Company said in a press release.
The Company also announced that it reached an agreement with Friends Investment Co., an affiliate and its largest shareholder, to sell to Friends 719,425 shares of common stock at $1.39 per share, the closing price of the Company shares on December 14, 2016, for total proceeds of $1,000,000. The agreement is subject to customary legal documentation.
Aristides Pittas, Chairman and CEO of Euroseas commented: "We are very pleased to announce the acquisition of M/V RT Dagr for common stock. This acquisition not only further positions the Company to benefit from a potential increase in the containership market after a long period of depressed rates, but also underlines the Company's strategy and ability to act as a consolidator of tonnage in the feeder containership sector. Furthermore, we are pleased to announce raising one million dollars in a private placement with our main shareholder and founder of our Company. This investment evidences our main shareholder's support and confidence in the prospects and strategy of our Company and further strengthens our balance sheet, and will assist us in pursuing our fleet renewal plans."
Including the acquisition of M/V RT Dagr and previously announced acquisition of M/V Capetan Tassos (to be delivered to the Company in January 2017), the Company's fleet will consist of 14 vessels, including four Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and eight feeder containerships.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA since January 31, 2007. Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (FE) Ltd. Inc., also an affiliated ship management company, which are responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.
Including M/V Capetan Tassos to be delivered in January 2017 and the M/V RT Dagr, the Company has a fleet of 14 vessels, including 4 Panamax drybulk carriers, 1 Handymax drybulk carrier, 1 Kamsarmax drybulk carrier, and 8 Feeder containerships. Euroseas 6 drybulk carriers have a total cargo capacity of 426,372 dwt, its 8 containerships have a cargo capacity of 13,170 teu. The Company has also signed a contract for the construction of one Kamsarmax (82,000 dwt) fuel efficient drybulk carrier. Including the new-building, the total cargo capacity of the Company's drybulk vessels will be 508,372 dwt.