Paragon Shipping Inc. Prices Upsized $30 Million Public Offering
ATHENS, Greece, Sept. 24, 2013
ATHENS, Greece, Sept. 24, 2013 /PRNewswire/ --Paragon Shipping Inc.
(NASDAQ:PRGN) ("Paragon Shipping") announced today that it has upsized and
priced a $30 million public offering consisting of 5,217,391 of its Class A
common shares at $5.75 per share.
The offering is expected to close on September 27, 2013. Paragon Shipping has
granted the underwriters a 45-day option to purchase an additional 782,609
Class A common shares to cover over-allotments, if any. The net proceeds from
the offering after the underwriting discount and other offering expenses
payable by Paragon Shipping are expected to be approximately $27.787 million.
The majority of the net proceeds of the offering are expected to be used by
Paragon Shipping to fund the initial deposits and other costs associated with
the purchase of two Ultramax newbuilding drybulk carriers with scheduled
delivery in May and July 2014, respectively. Paragon Shipping has agreed to
acquire these vessels from an affiliated entity, subject to the closing of the
offering, the assignment to Paragon Shipping by the seller of refund
guarantees from the shipyard, which are expected to be received by the seller
prior to the closing of this offering, and customary closing conditions. The
remainder of the net proceeds are expected to be used for general corporate
purposes, which may include additional newbuilding and secondhand vessel
acquisitions and/or the repayment of debt.
Maxim Group LLC is acting as joint book-running manager and lead managing
underwriter of the offering. Global Hunter Securities and National Securities
Corporation, a wholly owned subsidiary of National Holdings Inc. (OTCBB:NHLD),
are acting as joint book-running managers of the offering.
The offering is being made pursuant to Paragon Shipping's existing
registration statement previously filed with the Securities and Exchange
Commission ("SEC") and declared effective. This offering is being made only by
means of a prospectus. A preliminary prospectus related to the offering has
been filed with the SEC and is available on the SEC's website located at
www.sec.gov. When available, copies of the final prospectus relating to this
offering may be obtained from Maxim Group LLC, 405 Lexington Avenue, New York,
NY 10174 (or by telephone at 212-895-3685 or by email to
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy these securities, nor shall there be any sale of these
securities, in any state or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state or other jurisdiction.
About Paragon Shipping Inc.
Paragon Shipping is an international shipping company incorporated under the
laws of the Republic of the Marshall Islands with executive offices in Athens,
Greece, specializing in the transportation of drybulk cargoes. Paragon
Shipping's current fleet consists of thirteen drybulk vessels with a total
carrying capacity of 816,472 dwt. In addition, Paragon Shipping's current
newbuilding program (excluding the vessels to be acquired with the proceeds of
this offering as described herein) consists of one Handysize drybulk carrier
scheduled to be delivered in the fourth quarter of 2013 and two 4,800 TEU
containerships that are scheduled to be delivered in 2014. 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 Paragon Shipping's
website does not constitute part of this press release.
Cautionary Note Regarding Forward-Looking Statements
Certain of the statements made in this press release are "forward-looking
statements" as defined by U.S. federal securities laws, such as those, among
others, relating to the Paragon Shipping's expectations regarding the
completion and use of proceeds of the proposed public offering. Words such
as, but not limited to, "believe," "expect," "anticipate," "estimate,"
"intend," "plan," "targets," "projects," "likely," "will," "would," "could"
and similar expressions or phrases may identify forward-looking statements.
All forward-looking statements involve risks and uncertainties. Actual
results or developments may differ materially from those projected or implied
in these forward-looking statements. Factors that may cause such a difference
include, without limitation, risks and uncertainties related to market
conditions, the satisfaction of customary closing conditions related to the
public offering described herein and other risks set forth in the prospectus
for the offering described herein. There can be no assurance that Paragon
Shipping will be able to complete the proposed public offering on terms
satisfactory to it, or at all.
Paragon Shipping Inc.
Allen & Caron Inc.
THE ISSUER HAS FILED A REGISTRATION STATEMENT (INCLUDING A PROSPECTUS) WITH
THE SECURITIES AND EXCHANGE COMMISSION (THE "SEC") FOR THE OFFERING TO WHICH
THIS COMMUNICATION RELATES. BEFORE YOU INVEST, YOU SHOULD READ THE PROSPECTUS
IN THAT REGISTRATION STATEMENT AND OTHER DOCUMENTS THE ISSUER HAS FILED WITH
THE SEC FOR MORE COMPLETE INFORMATION ABOUT THE ISSUER AND THE OFFERING. YOU
MAY OBTAIN THESE DOCUMENTS FOR FREE BY VISITING EDGAR ON THE SEC WEB SITE AT
WWW.SEC.GOV. ALTERNATIVELY, THE ISSUER OR ANY UNDERWRITER PARTICIPATING IN THE
OFFERING WILL ARRANGE TO SEND YOU THE PROSPECTUS IF YOU REQUEST IT BY
CONTACTING Maxim Group LLC, AS REPRESENTATIVE OF THE UNDERWRITERS, 405
Lexington Avenue, New York, NY 10174 (or by telephone at 212-895-3685 or by
email to email@example.com).
SOURCE Paragon Shipping Inc.
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