Seanergy Maritime Holdings Corp. has announced that it has amended the convertible promissory note in the principal amount of $28,250,000 due on August 28, 2010.
Seanergy Maritime Holdings Corp. has announced that it has amended the convertible promissory note in the principal amount of $28,250,000 due on August 28, 2010, which was issued as partial consideration for the vessels it acquired in its business combination in August 2008, to reduce the conversion price. In connection with, and as a condition to, the reduction in the conversion price, holders of the note have converted the principal amount of the note and all accrued but unpaid fees and interest due thereunder into Seanergy common stock. The new conversion price is equal to the average closing price of the Company's Common Stock as quoted on the Nasdaq Global Market for the five trading days commencing 19 August 09.
Dale Ploughman, the Company's Chief Executive Officer, stated: "The conversion of the note into common stock is another significant step in our objective of transforming Seanergy into a leader in the global shipping industry. It reinforces Seanergy's capital structure by reducing our debt without depleting our cash reserves and by increasing our equity position. This reinforces our ability to continue pursuing a growth strategy taking advantage of acquisition opportunities that may arise during the current time of relatively soft asset values in the dry bulk sector. Furthermore, this conversion tangibly demonstrates the commitment and belief of the note holders in Seanergy's long term prospects.
"In less than a year since the conclusion of the business combination, we tripled the carrying capacity of our controlled fleet in terms of dwt expanding our revenue and profit generation capability, while maintaining a healthy balance sheet and delivering strong results despite the highly volatile market environment."