In Case You Missed It: Seanergy Maritime Working Hard Addressing Shareholder Overhang

New York, January 25, 2023.

Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) has taken a series of steps aimed at increasing shareholder value by addressing share price-related overhangs.

Buybacks of Convertible Notes

Seanergy’s initiatives include the recent buyback of $8 million of its Convertible Notes. The Company purchased $8 million of its outstanding convertible notes held by Jelco Delta Holding Corp. (“JDH”). Based on an exercise price of $1.20 per share, the buyback has pre-empted the potential dilution of 6.67 million shares realizing annual interest savings of $440,000. Since December 2021, the Company has repurchased in total $31.95 million of its convertible notes held by JDH, preempting the potential dilution of 26.63 million shares. There are approximately $3.2 million currently outstanding under the only remaining convertible note.

Buybacks of Class E Warrants

Furthermore, pursuant to the Tender Offer launched on November 30, 2022, Seanergy has bought back 47% of its outstanding Class E Warrants to purchase 4,038,114 million shares for a price of $807,623, or $0.20 per warrant. Since December 2021, Seanergy has repurchased warrants to purchase 8,323,828 shares. Following these transactions, there are approximately 4.5 million Class E Warrants outstanding to purchase an equal number of shares.

These buybacks are part of the Company’s wider strategy to increase shareholder rewards. Mr. Stamatis Tsantanis, Seanergy’s Chairman and CEO stated “The additional buybacks we completed recently are another example of our shareholder rewarding initiatives that we have implemented successfully over the last 12 months. We have decisively addressed the legacy overhang on our share price, whilst generating savings in interest expenses. We continuously demonstrate our strong commitment to enhancing value for our shareholders.”

Common Shares Acquisition by CEO

Moreover, Mr. Stamatis Tsantanis, has purchased in January 2023 an additional 250,500 of Seanergy’s common shares in the open market and has purchased 300,000 of Seanergy’s common shares in the open market since August 2022. 

“I have also accelerated my own open market purchases of Seanergy’s shares, with strong confidence in our Company’s prospects and the industry’s fundamentals, and I intend to continue demonstrating my support this way going forward” said Mr. Tsantanis.

$22.5 million in cash dividend distributions since April 2022

Seanergy declared a cash dividend of $0.025 per share for the third quarter of 2022 and follows the $0.025 per share, for the second quarter of 2022. Over the last four quarters, total cash dividend distributions, including a special dividend of $0.025 per share for the fourth quarter of 2021, which was on top of the regular $0.025 dividend per share, have been approximately $22.5 million or $0.125 per share.

Company to Hold Special General Shareholders Meeting to Vote on Reverse Stock Split

Seanergy will hold a Shareholders Meeting on February 7, 2023, in order to vote on a reverse stock split of its common shares at a ratio of not less than 1:8 and not more than 1:12. The proposed reverse stock split is aimed at “eliminating trading uncertainties and consolidating the outstanding number of the Company’s common stock”, as well as aligning Seanergy with the Nasdaq Stock Market’s minimum bid price requirement for maintaining its listing on the stock exchange, Mr. Tsantanis stated.

“Concerning the reverse stock split proposal, the trading of our shares below or around Nasdaq’s minimum bid price levels is considered restrictive for certain larger investors that could otherwise invest in Seanergy,” he stressed. The Seanergy CEO believes that the reverse stock split would be “very beneficial for [its] shareholders and will also increase the investor outreach for the stock, attracting fundamental, longer-term shareholders.”

Seanergy remains committed to the Capesize sector

Early this year, Seanergy purchased the M/V Paroship, a 2012-built Capesize vessel from a major Japanese company and the simultaneous commencement of its period employment.  The gross daily rate is set at a premium over the Baltic Capesize Index, while the Company has the option to convert the daily hire from index-linked to fixed for a period of minimum three (3) months to maximum nine (9) months based on the prevailing Capesize Freight Futures Agreements curve.

Seanergy also entered into definitive agreements of its oldest vessels in its fleet, the 2005-built M/V Goodship and the 2006-built M/V Tradership. Seanergy expects to record a profit of approximately $8 million in connection with the sale of the two vessels in the first quarter of 2023.

Mr. Tsantanis stated “The M/V Paroship will increase the number of the scrubber-fitted vessels in our fleet to nine, enhancing our cash-flow generating capacity based on the significant differential between high and low-sulfur fuel prevailing currently.  He continued “Seanergy remains committed to the Capesize sector with a solid operational structure and consistent capital allocation, focusing predominantly on shareholder rewards and sustainable growth”.

Recent Participation at the Capital Link Company Presentation Series

Capital Link recently hosted a presentation by the senior management of Seanergy Maritime. During the 45-minute session, Mr. Stamatis Tsantanis, CEO, and Mr. Stavros Gyftakis, CFO, outlined Seanergy’s financial status, the impact of China’s reopening on the sector, and maintaining fleet competitiveness.

A replay of the full session of the presentation and the extensive Q&A of Seanergy can be accessed at:

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About Seanergy Maritime Holdings

NASDAQ: SHIP

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship owner publicly listed in the U.S. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 18 Capesize vessels with an average age of approximately 12.4 years and aggregate cargo carrying capacity of approximately 3,201,426 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”. 

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