Paragon Shipping Announces Effectiveness Of One-For-Ten Reverse Stock Split

 Paragon Shipping Announces Effectiveness Of One-For-Ten Reverse Stock Split

PR Newswire

ATHENS, Greece, Nov. 5, 2012

ATHENS, Greece, Nov. 5, 2012 /PRNewswire/ --Paragon Shipping Inc. (NYSE:
PRGN) ("Paragon Shipping" or the "Company"), today announced that the
previously announced one-for-ten reverse stock split of the Company's issued
and outstanding shares of common stock, par value $0.001 per share (the
"Common Stock"), became effective after the close of trading today. The
Company's Common Stock will commence trading on a split-adjusted basis on the
New York Stock Exchange ("NYSE") upon the open of trading on November 6, 2012.
The Common Stock will continue trading on the NYSE under the symbol "PRGN"
but will trade under a new CUSIP number, 69913R 408.

The reverse stock split was previously approved by the Company's board of
directors and by shareholders at the 2012 Annual General Meeting of
Shareholders held on October 24, 2012.

Upon effectiveness of the reverse stock split, each ten (10) shares of the
Company's issued and outstanding Common Stock was automatically and without
any action on the part of the respective holders thereof combined and
converted into one (1) issued and outstanding share of Common Stock. This
reduced the number of issued and outstanding shares of the Company's Common
Stock from approximately 61.0 million to approximately 6.1 million. The
reverse stock split affected all issued and outstanding shares of the
Company's Common Stock, as well as Common Stock underlying stock options
outstanding immediately prior to the effectiveness of the reverse stock split.
The number of authorized shares of the Company's Common Stock was not affected
by the reverse split.

No fractional shares were issued in connection with the reverse stock split.
Shareholders who would have otherwise held a fractional share of the Company's
Common Stock as a result of the reverse stock split will receive a cash
payment in lieu of such fractional share.

Shareholders holding physical share certificates will receive instructions
from the Company's exchange agent, Computershare Trust Company, N.A.,
regarding the process for exchanging their shares. Shareholders with shares
held in book-entry form or through a bank, broker, or other nominee are not
required to take any action and will see the impact of the reverse stock split
reflected in their accounts after November 5, 2012. Beneficial holders may
contact their bank, broker, or nominee for more information.

About Paragon Shipping Inc.
Paragon Shipping is a Marshall Islands-based international shipping company
with executive offices in Athens, Greece, specializing in the transportation
of drybulk cargoes. The Company's current fleet consists of twelve drybulk
vessels with a total carrying capacity of 779,270 dwt. In addition, the
Company's current newbuilding program consists of two Handysize drybulk
carriers and two 4,800 TEU Containerships. Paragon Shipping has granted Box
Ships Inc., an affiliated company, the option to acquire its two
Containerships under construction. For more information, visit:
www.paragonship.com (the information contained on the Company's website does
not constitute part of this press release).

Forward-Looking Statements
Certain statements in this press release are "forward-looking statements"
within the meaning of the Private Securities Litigation Act of 1995. These
forward-looking statements are based on our current expectations and beliefs
and are subject to a number of risk factors and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. Such risks and uncertainties include without
limitation the strength of world economies and currencies, general market
conditions, including fluctuations in charter rates and vessel values, changes
in demand for drybulk shipping capacity, changes in our operating expenses,
including bunker prices, drydocking and insurance costs, the market for our
vessels, availability of financing and refinancing, charter counterparty
performance, ability to obtain financing and comply with covenants in such
financing arrangements, changes in governmental rules and regulations or
actions taken by regulatory authorities, potential liability from pending or
future litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political events,
vessels breakdowns and instances of off-hires and other factors, as well as
other risks that have been included in filings with the Securities and
Exchange Commission, all of which are available at www.sec.gov.

Contacts
Paragon Shipping Inc.
info@paragonship.com

Allen & Caron Inc.
Rudy Barrio
r.barrio@allencaron.com
(212) 691-8087

Len Hall (Media)
len@allencaron.com
(949) 474-4300

SOURCE Paragon Shipping Inc.

Website: http://www.paragonship.com
 
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