Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)
Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) has moved to bolster earnings in the Capesize market with a charter signing. The agreement is for the company’s latest capsize vessel, M/V Partnership, and involves a major European utility and energy company
The vessel, built in 2012, is on track to commence a twelve to eighteen month deployment. Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) expects gross proceeds of about $8.8 million.
“We are pleased to announce a period employment contract for our most recent Capesize acquisition. The strong rate achieved supports our projections for continued improvement in the Capesize market and overall dry bulk sector,” said CEO, Stamatis Tsantanis.
Tsantanis expects MV Partnership to strengthen the company’s position in the Capesize market in addition to expanding the current fleet. Plans are also in place to pursue other accretive acquisition opportunities that have the potential to increase their shareholder’s value.
Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) entered into an agreement to acquire MV Partnership in April in a transaction valued around $32.65 million. The company financed the transaction through a secured loan facility from a European bank.
Delivery of MV Partnership brings to 11 the number of modern dry bulk carriers that Seanergy Maritime currently operates. The fleet comprises of nine Capesizes and two Supramaxes with a total capacity of 1,682, 582 dwt.
NASDAQ Compliance Concern
Separately, Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) has received a Receipt of NASDAQ Notice, indicating it is not in compliance with the minimum listing requirement. The notice is in response to the company’s stock price trading below the $1 a share mark for 30 consecutive day between April 5, 2017 and May 17, 2017.
Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) has since been given until November 14, 2017, to regain compliance with the bidding price requirement. The international shipping company can ensure compliance by having its stock price trade above $1 a share for ten consecutive days.
“The Company intends to monitor the closing bid price of its common stock between now and November 14, 2017, and is considering its options, including a reverse stock split, in order to regain compliance with the Nasdaq Capital Market minimum bid price requirement,” Seanergy Maritime in a statement.
The NASDAQ notice will not in any way affect the listing or trading of Seanergy stock prior to the completion of the grace period.
Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) stock was up by 0.16% in Wednesday’s trading session ending the day at $0.691 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.