Three-year agreement funds general corporate, working capital purposes
By Devika Patel
Knoxville, Tenn., Oct. 12 - FreeSeas Inc. negotiated an investment agreement with Dutchess Opportunity Fund, II, LP on Oct. 11, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
Dutchess will buy up to 2,352,962 common shares over three years in tranches of up to 200% of the average daily volume of the common stock for the three trading days preceding the put notice, multiplied by the average of the three daily closing prices immediately preceding the notice, or $200,000.
The purchase price is set at 98% of the lowest daily volume-weighted average price of the stock during the five-consecutive-trading-day period following the drawdown notice.
The investor was paid a $10,000 fee for the deal.
Proceeds will be used for general corporate and working capital purposes.
FreeSeas Inc., based in Athens, is a transporter of dry-bulk cargoes.
| Issuer: | FreeSeas Inc.
|
| Issue: | Investment agreement
|
| Tenor: | Three years
|
| Price: | 2% discount
|
| Warrants: | No
|
| Investor: | Dutchess Opportunity Fund, II, LP
|
| Fees: | $10,000
|
| Pricing date: | Oct. 11
|
| Stock symbol: | Nasdaq: FREE
|
| Stock price: | $0.23 at close Oct. 10
|
| Market capitalization: | $1.46 million
|
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