Note is convertible at lesser of $0.3955 and 60% of lowest VWAP
By Devika Patel
Knoxville, Tenn., Oct. 29 – FreeSeas Inc. sold a $500,000 one-year convertible note to ALSA Holdings Ltd. in a private placement on Oct. 26, according to a 6-K filed Thursday with the Securities and Exchange Commission.
The 8% convertible note will be convertible into common shares at a conversion price equal to the lesser of $0.3955 and 60% of the lowest volume-weighted average price of the stock during the 21 trading days preceding the conversion date.
The note is callable in whole at any time at 127.5% of the amount of par and interest being redeemed.
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 $0.3955 and 60% of the lowest volume-weighted average price of the stock during the 21 trading days preceding the conversion date
|
| Warrants: | No
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| Investor: | ALSA Holdings Ltd.
|
| Call: | In whole at 127.5
|
| Settlement date: | Oct. 26
|
| Stock symbol: | Nasdaq: FREE
|
| Stock price: | $0.07 at close Oct. 23
|
| Market capitalization: | $516,180
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