ATHENS-based Paragon Shipping has sold 4,901,961 newly-issued shares of common stock to an entity affiliated with its CEO Michael Bodouroglou for US$10 million.
"This transaction strengthens the company's financial position and ensures that it continues to meet NYSE [New York Stock Exchange] listing requirements," said Mr Bodouroglou, adding that the proceeds will be used for working capital purposes.
In addition, the company will have the right, but not the obligation, to repurchase the shares, at the same price. In addition, the independent directors must approve any exercise of the company's repurchase right.
"To remove any uncertainty in satisfying a key condition precedent stipulated under our amended loan agreements, I have agreed with the independent members of the board $10 million worth of shares in Paragon," Mr Bodouroglou said.
Paragon Shipping is a New York-listed Marshall Islands-based international shipping company with executive offices in Athens, Greece, specialising in dry bulk, but has two 4,800-TEU containerships on order to be delivered in 2014.
The company's current fleet consists of 12 dry bulk vessels with a total carrying capacity of 779,270 dwt. In addition, the company's current newbuilding programme consists of two handysize dry bulkers to be delivered in 2013.
Paragon Shipping has granted New York-listed Box Ships Inc, an affiliated company, the option to acquire the two containerships under construction |
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Source: seanews
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