8% convertible promissory note was sold to Himmil Investments in deal
By Devika Patel
Knoxville, Tenn., Jan. 7 – FreeSeas Inc. sold a $500,000 8% one-year convertible promissory note to Himmil Investments Ltd. on Jan. 5, according to a 6-K filed Wednesday with the Securities and Exchange Commission.
The note is convertible into common stock at the lesser of $0.452 and 60% of the lowest volume-weighted average price of the stock during the 21 trading days preceding conversion.
The note may be redeemed at 127.5.
“This investment strengthens the cash liquidity of the company at a time when freight rates are depressed and opportunities flourish for vessel acquisitions at depressed values,” chairman, president and chief executive officer Ion G. Varouxakis said in a press release.
“We look forward to successfully leveraging our existing unencumbered assets in order to take advantage of emerging opportunities in the sector. The announced transaction is part of our strategy of bringing together the catalysts required for fleet growth, which will lead to improved earnings and eventually restoring shareholder value.”
FreeSeas, based in Athens, is a transporter of dry-bulk cargoes.
Issuer: | FreeSeas Inc.
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Issue: | Convertible promissory note
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Amount: | $500,000
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Maturity: | One year
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Coupon: | 8%
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Conversion price: | The lesser of $0.452 and 60% of the lowest volume-weighted average price of the stock during the 21 trading days preceding conversion
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Call: | At 127.5
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Investor: | Himmil Investments Ltd.
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Warrants: | No
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Settlement date: | Jan. 5
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Stock symbol: | Nasdaq: FREE
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Stock price: | $0.09 at close Jan. 2
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Market capitalization: | $3.01 million
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