MAROUSSI, ATHENS, GREECE--(Marketwire - Jun 19, 2012) - 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 today the results of its previously announced rights offering to shareholders of the Company.
The rights offering expired on June 15, 2012 and was oversubscribed, including the exercise of basic subscription privileges and oversubscription privileges, at a price of $1.10 per share for 13,852,094 shares of common stock of the Company. Since shareholders exercised oversubscription privileges for more shares than were available to be purchased under the rights offering pursuant to their oversubscription privileges, the shares of our common stock to be issued pursuant to the exercise of the oversubscription privileges will be allocated pro rata among those oversubscribing holders as described in the offering materials.
The Company strengthened its balance sheet through the rights offering generating total net proceeds of approximately $14.9 million. The Company intends to use the proceeds of the rights offering to renew and expand its fleet, to participate in joint ventures with the objective of acquiring vessels and for general corporate purposes.
Aristides Pittas, Chairman and CEO of Euroseas, commented: "We are pleased to enjoy the support of our shareholders in our efforts to increase the value of our company. We look forward to using the proceeds of this offering along with other funds at our disposal to take advantage of market opportunities accretive to our operations. We are confident that our strategy will enable us to realize significant returns for our shareholders."
About Euroseas Ltd.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Global Select Market under the ticker "ESEA."
Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2008 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.
The Company has a fleet of 15 vessels, including 4 Panamax drybulk carriers and 1 Handymax drybulk carrier, 3 Intermediate containerships, 4 Handysize containerships, 2 Feeder containerships and a multipurpose dry cargo vessel. Euroseas' 5 drybulk carriers have a total cargo capacity of 331,808 dwt, its 9 containerships have a cargo capacity of 15,855 teu and its multipurpose vessel has a cargo capacity of 22,568 dwt or 950 teu.
Forward Looking Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including our expected joint venture and vessel acquisitions and time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for drybulk vessels and containerships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
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