Convertible preferred stock sold with warrants for 37.5 million shares
By Devika Patel
Knoxville, Tenn., Dec. 30 - FreeSeas Inc. said it will settle the second and final $8.5 million tranche of a $10 million private placement of 0% convertible preferred stock with Crede CG III, Ltd. The deal priced on Nov. 4 and raised $1.5 million on Nov. 5.
The preferreds were sold at $100.00 apiece and are convertible into common shares at lower of $2.00 and the closing bid price of the stock on Dec. 30.
Crede also received two types warrants for a total of 37.5 million shares, with the five-year series A warrants exercisable for 25 million shares at $0.52 and the one-year series B warrants exercisable for 12.5 million shares at $0.52. The strike prices are a 30% premium to the Nov. 1 closing price.
FreeSeas Inc., based in Athens, is a transporter of dry-bulk cargoes.
| Issuer: | FreeSeas Inc.
|
| Issue: | Convertible preferred stock
|
| Amount: | $10 million
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| Price: | $100.00
|
| Conversion price: | Lower of $2.00 and the closing bid price of the stock on Dec. 30
|
| Dividends: | 0%
|
| Warrants: | For 37.5 million shares
|
| Warrant expiration: | Five years, one year
|
| Warrant strike price: | $0.52
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| Investor: | Crede CG III, Ltd.
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| Pricing date: | Nov. 4
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| Settlement date: | Nov. 5 ($1.5 million), Dec. 30 (for $8.5 million)
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| Stock symbol: | Nasdaq: FREE
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| Stock price: | $0.40 at close Nov. 1
|
| Market capitalization: | $24.96 million
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