Movers and SHAKERS
Wednesday, August 19, 2020
Seanergy Maritime (SHIP)
Equity Offering Surprising; Lowering Rating to Market Perform
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.
- Another equity offering is a negative surprise given significant 2Q2020 equity offerings. After Monday's close, an equity offering of 35.71 million units was priced at $0.70/share. In addition to a discount of ~40%, we were surprised by both the timing and size of the equity offering given that 2Q2020 equity offerings raised ~$47 million and estimated cash was $21 million pro forma for the Goodship acquisition. Gross proceeds of $25.0 million (net proceeds of ~$23.5 million) will increase cash above $40 million and potentially improve the prospects for refinancing 2020 debt maturities. But the offering pushes up total shares outstanding by almost 120 percent into the 65.71 million share range, which is extraordinary considering an adjusted share count of 1.68 million at year end 2019.
- Financial leverage and refinancing risk remain high. While significant capital was raised in 2Q2020 and a total of $59.9 million of debt has extended/refinanced this year, the capital structure remained highly levered. More importantly, total debt of ~$64 million matures before year end 2020; bank debt of ...
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.