NewLead Holdings Ltd. Receives Investment of $236.4 million
PIRAEUS, Greece, Jan. 9, 2013
PIRAEUS, Greece, Jan. 9, 2013 /PRNewswire/ --NewLead Holdings Ltd. (NASDAQ:
NEWL) ("NewLead") today announced that the Company received a capital
contribution of industrial metal valued at $236.4 million for a 36.8% equity
interest in NewLead.
Michael Zolotas, President and Chief Executive Officer of NewLead, stated,
"this significant investment demonstrates confidence in the management team
and the future of NewLead. The investment will provide valuable collateral
for loans funding our capital-intensive activities and provides a solid
platform to execute on our diversified growth strategy."
Upon completion of this transaction, it is expected that NewLead will have a
total of 701,904,963 shares of common stock outstanding. NewLead will issue,
following NASDAQ's approval, unregistered shares in exchange for the new
investment. The new shareholder has agreed, subject to certain limited
exceptions, not to pledge, borrow or dispose of the NewLead shares or
otherwise transfer ownership of the shares until June 30, 2014. The new
shareholder will not have board representation or other rights.
The value of the industrial metal was established on January 7, 2013 by an
independent appraiser. The foreign currency exchange rate on January 7, 2013
was used for currency translation.
About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international, vertically integrated shipping and
commodity company that manages product tankers and dry bulk vessels. NewLead
currently controls four vessels, two tankers and two dry bulk vessels.
NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ
Global Select Market. To learn more about NewLead Holdings Ltd., please visit
the new website at www.newleadholdings.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
This press release includes assumptions, expectations, projections, intentions
and beliefs about future events. These statements, as well as words such as
"anticipate," "estimate," "project," "plan," and "expect," are intended to be
''forward-looking" statements. We caution that assumptions, expectations,
projections, intentions and beliefs about future events may vary from actual
results and the differences can be material. Forward-looking statements
include, but are not limited to, such matters as future operating or financial
results; our liquidity position and cash flows, our ability to borrow
additional amounts under our revolving credit facility and, if needed, to
obtain waivers from our lenders and restructure our debt, and our ability to
continue as a going concern; statements about planned, pending or recent
vessel disposals and/or acquisitions, business strategy, future dividend
payments and expected capital spending or operating expenses, including
dry-docking and insurance costs; statements about trends in the product tanker
and dry bulk vessel shipping segments, including charter rates and factors
affecting supply and demand; expectations regarding the availability of vessel
acquisitions; completion of repairs; length of off-hire; availability of
charters; and anticipated developments with respect to any pending litigation.
The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management's examination of historical operating
trends, data contained in our records and other data available from third
parties. Although NewLead believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, NewLead cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections described in the forward
looking statements. Important factors that, in our view, could cause actual
results to differ materially from those discussed in the forward-looking
statements include the strength of world economies and currencies, general
market conditions, including changes in charter rates and vessel values,
failure of a seller to deliver one or more vessels, and other factors
discussed in NewLead's filings with the U.S. Securities and Exchange
Commission from time to time. NewLead expressly disclaims any obligations or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in NewLead's
expectations with respect thereto or any change in events, conditions or
circumstances on which any statement is based.
Investor and Media Relations:
NewLead Holdings Ltd.
Telephone: + 30 213 014 8023
SOURCE NewLead Holdings Ltd.
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