FreeSeas Announces Results of Annual Meeting, Notice of Delisting From Nasdaq
and Intention to Appeal
ATHENS, Greece, Dec. 20, 2012 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE)
("FreeSeas" or the "Company"), a transporter of dry-bulk cargoes through the
ownership and operation of a fleet of Handysize and Handymax vessels,
announced today that, at the annual meeting of the Company, the Company's
shareholders elected Xenophon Galinas to the Board of Directors for three
years, approved a reverse split of the Company's issued and outstanding common
stock at a ratio of up to one (1) for every twelve (12) shares outstanding and
ratified the appointment of Sherb & Co., LLP as the Company's independent
registered public accounting firm for the year ending December 31, 2012.
The Company also announced today that it has received a letter from the Nasdaq
listing qualifications staff stating that the Company's common stock will be
delisted from the Nasdaq Global Market because the Company has not, during the
180-day grace period previously granted by Nasdaq, regained compliance with
the Nasdaq continued listing requirement that the bid price of the Company's
common stock be at least $1.00 per share as set forth in Nasdaq Listing Rule
Section 5450(a)(1). The Company may appeal such decision to a Nasdaq Hearings
Panel within seven days from the date of the determination letter.
The Company currently intends to appeal such decision and intends to submit to
Nasdaq a plan to regain compliance with such continued listing requirement.As
a result of the submission of such appeal, the delisting of the Company's
common stock from the Nasdaq Global Market will be stayed until such time as a
determination has been made on the Company's appeal.
The Company's plan of compliance will include, among other things, plans to
consummate the reverse stock split of the Company's issued and outstanding
common stock as approved at the annual meeting. The Company's board of
directors has determined it is in the Company's and its shareholders' best
interest to defer the consummation of such reverse stock split until such time
as it has formulated a complete plan of compliance to present to the Nasdaq
Hearings Panel.The Company has also applied to list its shares on the Nasdaq
Capital Market, which application has not yet been approved.
About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in
Athens, Greece. FreeSeas is engaged in the transportation of drybulk cargoes
through the ownership and operation of drybulk carriers. Currently, it has a
fleet of Handysize and Handymax vessels. Risks and uncertainties are described
in reports filed by FreeSeas Inc. with the U.S. Securities and Exchange
Commission, which can be obtained free of charge on the SEC's website at
http://www.sec.gov. For more information about FreeSeas Inc., please visit the
corporate website, www.freeseas.gr.
The FreeSeas Inc. logo is available at
This press release contains forward-looking statements (as defined in Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended) concerning future events and the
Company's growth strategy and measures to implement such strategy, including
expected vessel acquisitions. Words such as "expects,'' "intends,'' "plans,''
"believes,'' "anticipates,'' "hopes,'' "estimates,'' and variations of such
words and similar expressions are intended to identify forward-looking
statements. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, no assurance can be given that
such expectations will prove to be correct. These statements involve known and
unknown risks and are based upon a number of assumptions and estimates which
are inherently subject to significant uncertainties and contingencies, many of
which are beyond the control of the Company. Actual results may differ
materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially include, but are
not limited to, changes in the demand for drybulk vessels; competitive factors
in the market in which the Company operates; risks associated with operations
outside the United States; and other factors listed from time to time in the
Company's filings with the Securities and Exchange Commission. The Company
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with respect thereto or any
change in events, conditions or circumstances on which any statement is based.
CONTACT: At the Company
Alexandros Mylonas, Chief Financial Officer
FreeSeas Inc. Logo
Press spacebar to pause and continue. Press esc to stop.