Offering to run to Sept. 17; proceeds earmarked for fleet expansion
By Marisa Wong
Morgantown, W.Va., Aug. 31 – Euroseas Ltd. said it has begun its previously announced rights offering to raise roughly $19.5 million.
The company will offer up to about 4,338,018 shares of common stock to shareholders of record as of the close of business on Aug. 14, according to a press release.
The shares will be sold to holders under non-transferable subscription rights. Basic subscription rights will be allocated in three non-transferable subscription rights for each four shares of common stock owned on the record date.
Each subscription right represents the right to purchase one share of common stock at a subscription price of $4.50 per share and consists of a basic subscription privilege and an oversubscription privilege, which will be available if the rights offering is not fully subscribed under the basic subscription privilege.
The subscription price is a 16.2% discount to the Aug. 28 closing share price of $5.37.
The offering is expected to expire on Sept. 17.
The company intends to use proceeds to renew and expand its fleet by taking delivery of its drybulk vessels currently under construction and for general corporate purposes.
Euroseas is an Athens-based owner and operator of drybulk and container carrier vessels.
Issuer: | Euroseas Ltd.
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Issue: | Common stock
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Amount: | $19.5 million (approximate)
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Shares: | Up to 4,338,018
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Price: | $4.50
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Warrants: | No
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Record date: | Aug. 14
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Subscription period: | Aug. 31-Sept. 17
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Stock symbol: | Nasdaq: ESEA
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Stock price: | $5.37 at close Aug. 28
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Market capitalization: | $29.09 million
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