Three-year agreement funds general corporate, working capital purposes
By Devika Patel
Knoxville, Tenn., May 30 - FreeSeas Inc. negotiated an investment agreement with Dutchess Opportunity Fund, II, LP on May 29, according to a 6-K filed Thursday with the Securities and Exchange Commission.
Dutchess will buy up to 2,304,662 common shares over three years in tranches of up to the greater of 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 $500,000.
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 draw-down 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
|
| Tenor: | Three years
|
| Price: | 2% discount
|
| Warrants: | No
|
| Investor: | Dutchess Opportunity Fund, II, LP
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| Pricing date: | May 29
|
| Stock symbol: | Nasdaq: FREE
|
| Stock price: | $0.64 at close May 28
|
| Market capitalization: | $3.32 million
|
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