Euroseas Ltd. Enters Into Agreement to Sell Common Stock in a Private Placement
Raising $14.4 Million in Net Proceeds
MAROUSSI, GREECE and ATHENS, GREECE -- (Marketwired) -- 03/11/14 --
Euroseas Ltd. (NASDAQ: ESEA) (the "Company") announced today that it
entered into an agreement to sell approximately 11.2 million shares
of its common stock in a private placement at a price of $1.3435 per
share to an institutional investor for expected net proceeds of
approximately $14.4 million. The Company intends to use the proceeds
for the acquisition of vessels and general corporate purposes. The
transaction is expected to close by March 14, 2014. RMK Maritime
acted as an advisor to the Company in the transaction.
Aristides Pittas, Chairman and CEO of Euroseas Ltd. commented: "We
are very pleased to conclude the private placement of approximately
11.2 million shares of our stock, to an institutional investor, at
recent average trading price levels and raising approximately $14.4
million in net proceeds. We believe that this investment is another
vote of confidence in our strategy and in the prospects of Euroseas.
We look forward to continue expanding and renewing our fleet, in
keeping with our strategy of growing Euroseas by adding quality
vessels to our fleet and also by broadening our shareholder base. The
present transaction is a testament to the latter as is the recent
sale of more than $29 million of net proceeds raised by selling
convertible preferred stock. We plan to deploy these funds to partly
fund our two newbuildings and recent panamax bulker acquisition and
further pursue accretive acquisitions focusing on the drybulk sector
and on selected opportunities in the containership sector."
About Euroseas Ltd.
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 136 years. Euroseas trades on the
NASDAQ Global Select Market under the ticker ESEA since January 31,
Euroseas operates in the dry cargo, drybulk and container shipping
markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO
9001:2008 certified affiliated ship management company, which is
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.
Euroseas has a fleet of 14 vessels, including 3 Panamax drybulk
carriers and 1 Handymax drybulk carrier, 3 Intermediate size
containerships, 5 Handy size containerships and 2 Feeder
containerships. Euroseas 4 drybulk carriers have a total cargo
capacity of 262,074 dwt, and its 10 containerships have a cargo
capacity of 17,587 teu. The Company has signed a memorandum of
agreement to acquire a 76,466 dwt, Panamax drybulk vessel, that will
be delivered to Euroseas by the end of May 2014. Euroseas has also
entered into agreements for the construction of two 63,500 dwt
Ultramax dry bulk vessels with expected deliveries during the fourth
quarter of 2015 and the first quarter of 2016, respectively.
Including the newly acquired Panamax vessel and two new-building
Ultramax vessels, the total cargo capacity of the Company's drybulk
vessels will be 465,540 dwt.
Forward Looking Statement
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 our expected joint venture and vessel acquisitions and time
charters. 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 have been
correct. These statements involve known and unknown risks and are
based upon a number of assumptions and estimates that 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 and containerships, 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 obligations 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.
Visit our website www.euroseas.gr
Chief Financial Officer
11 Canterbury Lane,
Watchung, NJ 07069
Tel. (908) 301-9091
Investor Relations / Financial Media
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
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