Highlights of Strategic Initiatives:
- New 2-year buyback program of up to
$25 million authorized by the Board of Directors representing up to 18% of our current share capital1- Successfully completed three previous buyback programs of
$32 million , repurchasing$28.3 million of common shares, convertible notes, and warrants2.
- Successfully completed three previous buyback programs of
- Buyback of all remaining outstanding convertible notes within 4Q2023
- Total buyback of convertible notes of
$35.1 million in the last 2 years3.
- Total buyback of convertible notes of
$1 million in additional open-market purchases by the CEO, intended to be effected within 4Q2023 and FY2024- CEO has already completed
$1.1 million of open market purchases of Seanergy’s common shares in 2023 to date.
- CEO has already completed
$30 million ATM program, which may be utilized to raise cash proceeds for general corporate purposes, including to partially fund the buyback of securities with the goal of preserving the Company’s robust liquidity reserves
The Company will also fully repay its last remaining convertible note (the “Note”) pursuant to the terms of the Note. The Note bears a 5.5% coupon, it is the last from a series of convertible notes with aggregate original notional amount of
Seanergy has, since
Plan / Amount | Authorized | Expiry | Securities repurchased | |||||
Common Shares | Convertible Notes | Warrants | ||||||
1 ( | Aug '21 | Dec '21 | $ | 1,708,163 | $ | 13,950,000 | $ | 1,023,136 |
2 ( | Dec '21 | Dec '22 | $ | 10,000,000 | ||||
3 ( | Jun '22 | Dec '23 | $ | 1,582,664 | ||||
Total: | $ | 3,290,827 | $ | 23,950,000 | $ | 1,023,136 | ||
Moreover, outside the scope of the above buyback programs, the Company has:
- repurchased
$0.81 million of outstanding warrants inJanuary 2023 through a tender offer that was launched inNovember 2022 , and - repaid
$8 million of convertible notes inJanuary 2023 , under a scheduled repayment pursuant to the terms of the Note.
The aggregate capital committed by the Company for securities repurchases in the last two years, including the upcoming convertible note repayment, is
Seanergy has also filed a prospectus supplement with the
The Company’s objective is to use a portion of the net proceeds under the ATM Program to fund the new buyback program, taking advantage of share price volatility, without affecting materially its healthy liquidity reserves. In addition, it intends to use the net proceeds for general corporate purposes, which may include additions to working capital, capital expenditures, repayment of debt, or the financing of possible vessel acquisitions or other investments. However, the timing and amount of any sales under the ATM program will depend on market conditions and other factors to be determined by the Company.
Lastly, Seanergy’s Chairman & Chief Executive Officer, Mr.
“Given our strong commitment to create accretion for our shareholders, as well as the Capesize sector’s performance and outlook, our BOD has authorized a
“The simultaneous adoption of an ATM program is intended to partly fund the buyback program and provide us with flexibility to capitalize on variable market conditions and potentially to fund other accretive transactions and shareholder value creation opportunities. As market conditions dictate, we intend to deploy either our buyback program or ATM program opportunistically, always with the goal of creating value for our common shareholders.
“We have allocated substantial amounts over the last two years in buybacks of our securities, which clearly indicates our priority in creating shareholder accretion. Finally, after completing approximately
Important Information
Pursuant to the Plan, the Company may repurchase its securities by means including open-market transactions pursuant to Rule 10b-18 of the Securities Exchange Act of 1934, as amended, or pursuant to a trading plan adopted in accordance with Rule 10b5‐1 of the Securities Exchange Act of 1934.
Any repurchases pursuant to the Plan will be made at management’s discretion at prices considered to be attractive and in the best interests of both the Company and its shareholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, applicable securities laws and the Company’s financial performance. The Plan may be suspended, terminated, or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of repurchases. The Plan does not obligate the Company to purchase any of its securities. The BOD’s authorization of the Plan is effective immediately and expires on
The common shares offered in the ATM Program will be offered under the Company’s shelf registration statement on Form F-3 (File No. 333-257693) declared effective on
A copy of the prospectus supplement and the accompanying prospectus relating to these securities may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov or by contacting
About
The Company is incorporated in the
Please visit our Company website at: www.seanergymaritime.com.
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, including, but not limited to, statements concerning the ATM Program, the Plan and potential purchases of the Company’s common shares by its Chief Executive Officer. Words such as "may", "should", "expects", "intends", "plans", "believes", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. 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 Company's operating or financial results; the Company's liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside
For further information please contact:
Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1536
Tel: (212) 661-7566
Email: seanergy@capitallink.com
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1 Based on shares outstanding and closing share price as of
2 Excluding
3 Pro forma to include the remaining
Source:
2023 GlobeNewswire, Inc., source