Wednesday, December 08, 2021
Seanergy Maritime (SHIP)
Buybacks Limit Potential Added Share Issuance
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 Capesize vessels. Upon delivery of the M/V Dukeship, the Company’s operating fleet will consist of 17 Capesize vessels with an average age of 11.5 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt. The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP”, its Class A warrants under “SHIPW” and its Class B warrants under “SHIPZ”.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Buyback program of $16.6 million completed. The buyback program included the buy back of convert debt for $14.0 million, Class E warrants for $1.0 million from Jelco, the former principal shareholder. In addition, 1.6 million shares were bought on the open market for $1.6 million, or an average price of $0.998/share. Non-cash charges of ~$7.0 million will be recognized in 4Q2021 numbers.
Buyback program eliminates potential share issuance. Since the convert debt was convertible at $1.20/share and the warrants had a strike price of $0.70/share, the fully diluted share count drops by 15.9 million. Pro forma for the transaction, current shares out are in the 173.1 million range and the fully diluted share count drops to ~199.3 million, including 8.6 million share from warrants and …
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.
