One-year note was sold to investor Alderbrook Ship Finance in offering
By Devika Patel
Knoxville, Tenn., April 22 – FreeSeas Inc. sold a $500,000 8% one-year convertible note to Alderbrook Ship Finance Ltd. on April 16, according to a 6-K filed Wednesday with the Securities and Exchange Commission.
The note is convertible into common stock at the lesser of $0.24 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.
The company reimbursed the investor for $15,000 in fees.
FreeSeas, based in Athens, is a transporter of dry-bulk cargoes.
| Issuer: | FreeSeas Inc.
|
| Issue: | Convertible note
|
| Amount: | $500,000
|
| Maturity: | One year
|
| Coupon: | 8%
|
| Conversion price: | The lesser of $0.24 and 60% of the lowest volume-weighted average price of the stock during the 21 trading days preceding conversion
|
| Call: | At 127.5
|
| Investor: | Alderbrook Ship Finance Ltd.
|
| Fees: | $15,000
|
| Warrants: | No
|
| Settlement date: | April 16
|
| Stock symbol: | Nasdaq: FREE
|
| Stock price: | $0.05 at close April 15
|
| Market capitalization: | $1.33 million
|
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