Seanergy Maritime Holdings Corp. Announces Termination of Agreement
February 08 2010 - 8:30AM
Marketwired
Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP)
(NASDAQ: SHIPW) announced today that, due to market conditions, the
Company's Board of Directors has determined to terminate the
memorandum of agreement for the intended acquisition of a 2009
Capesize vessel as described in the Company's prospectus dated
January 28, 2010.
"The decision of the Board safeguards the long-term interests of
our shareholders," explained Dale Ploughman, Chief Executive
Officer of the Company. "Our initial intention, as expressed in the
prospectus, was to use the net proceeds of our recent offering for
this purchase. The purchase price we agreed to pay for this vessel
reflected the above-market charterhire that we expected to receive
from the charter currently in place. However, after closely
analyzing unforeseen very recent developments in the world economy,
we believe that these developments, and in particular the
announcement by the Chinese government to restrict Chinese banks'
lending activities, would likely adversely affect our ability to
realize the full benefits from this purchase and subject us to
prolonged and undue market and credit risk given the vessel's high
price. Therefore, the Board determined that it would be in the best
interests of the Company and all of its shareholders to terminate
the agreement for this vessel. Fortunately, we were able to do so
prior to placing a deposit for the vessel."
"We are committed to our stated goal of using the net proceeds
of the offering, which are currently held in an interest-bearing
bank account, to expand our fleet and we are focusing our resources
on identifying vessel(s) with a view to maximizing benefits to the
Company, as quickly as possible," Mr. Ploughman added.
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp., the successor to Seanergy
Maritime Corp., is a Marshall Islands corporation with its
executive offices in Athens, Greece. The Company is engaged in the
transportation of dry bulk cargoes through the ownership and
operation of dry bulk carriers.
The Company's initial fleet comprised two Panamax, two Supramax
and two Handysize dry bulk carriers that Seanergy purchased and
took delivery of in the third and fourth quarters of 2008 from
companies associated with members of the Restis family. In August
2009, the Company acquired a controlling interest in Bulk Energy
Transport (Holdings) Limited ("BET") which owns five drybulk
carriers, four Capesize and one Panamax.
As a result, the Company's current controlled fleet includes 11
drybulk carriers (4 Capesize, 3 Panamax, 2 Supramax and 2 Handysize
vessels) with a total carrying capacity of 1,043,296 dwt and an
average age of 14 years.
The Company's common stock and warrants trade on the NASDAQ
Global Market under the symbols SHIP and SHIP.W, respectively.
Forward-Looking Statements
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. 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 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, which 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, the scope and
timing of SEC and other regulatory agency review, 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's filings can be
obtained free of charge on the SEC's website at www.sec.gov. 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.
For further information please contact: Seanergy Maritime
Holdings Corp. Dale Ploughman Chief Executive Officer Tel: +30 210
9638461 E-mail: ir@seanergymaritime.com Investor Relations / Media
Capital Link, Inc. Paul Lampoutis 230 Park Avenue Suite 1536 New
York, NY 10169 Tel. (212) 661-7566 E-mail:
seanergy@capitallink.com
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