Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced Thursday (Dec 15) that it signed a memorandum of agreement to purchase the M/V RT Dagr, a feeder containership vessel of 1,645 teu built in 1998 in Germany, for approximately 900,000 shares of the Company's common stock.
Container ship RT Dagr - Image courtesy: Wolfgang Berthel
The vessel is expected to be delivered to the Company in December 2016. The vessel will be acquired from an entity controlled by Tennenbaum Capital Partners, a holder of the Company's preferred stock.
The Company also announced that it reached an agreement with Friends Investment Co., an affiliate and its largest shareholder, to sell to Friends 719,425 shares of common stock at $1.39 per share, the closing price of the Company shares on December 14, 2016, for total proceeds of $1,000,000. The agreement is subject to customary legal documentation.
Aristides Pittas, Chairman and CEO of Euroseas commented: "We are very pleased to announce the acquisition of M/V RT Dagr for common stock. This acquisition not only further positions the Company to benefit from a potential increase in the containership market after a long period of depressed rates, but also underlines the Company's strategy and ability to act as a consolidator of tonnage in the feeder containership sector. Furthermore, we are pleased to announce raising one million dollars in a private placement with our main shareholder and founder of our Company. This investment evidences our main shareholder's support and confidence in the prospects and strategy of our Company and further strengthens our balance sheet, and will assist us in pursuing our fleet renewal plans."
Including the acquisition of M/V RT Dagr and previously announced acquisition of M/V Capetan Tassos (to be delivered to the Company in January 2017), the Company's fleet will consist of 14 vessels, including four Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and eight feeder containerships.