Company to sell stock to Granite State at 2% discount to market price
By Devika Patel
Knoxville, Tenn., Jan. 24 - FreeSeas Inc. negotiated a three-year investment agreement with Granite State Capital, LLC on Jan. 24, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The company will sell up to 3,957,903 shares to the investor in tranches of up to the greater of $500,000 or 200% of the average daily trading volume of the stock for the three consecutive trading days preceding the notice date, multiplied by the average of the three daily closing prices immediately preceding the notice date.
The shares will be sold at a purchase price equal to 98% of the lowest daily volume weighted average price during the pricing period, which is the five consecutive trading days following a put notice.
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
|
| Shares: | 3,957,903
|
| Tenor: | Three years
|
| Price: | 2% discount
|
| Warrants: | No
|
| Investor: | Granite State Capital, LLC
|
| Pricing date: | Jan. 24
|
| Stock symbol: | Nasdaq: FREE
|
| Stock price: | $0.03 at close Jan. 23
|
| Market capitalization: | $8.74 million
|
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