Wednesday, May 12, 2021
Seanergy Maritime (SHIP)
Debt Converted and Acquisitions Increase Cape Exposure
Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed in the US capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and class A warrants under “SHIPW”.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Two acquisitions were completed and two others are slated to close in June. Acquisition financing lined up. The Hellaship and Flagship acquisitions have closed and both are working on charters based on the Baltic Capesize Index (BCI). The Patriotship and Tradership acquisitions should close in June. Financing of ~$48 million has been lined up or in process so funding for the total acquisition cost of $101 million appears in place.
Debt of $3 million converted into equity. Jelco, the former major shareholder, converted sub debt of $3 million into 4.3 million shares and 4.3 million warrants with a strike price of $0.70/share. While an updated 13D has not been filed, we estimate that Jelco owns 7.8 million shares/pre-funded warrants, 12.3 million warrants with a strike price of $0.70/share and holds debt of $38.7 million …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
