SOURCE: Euroseas

Euroseas

September 12, 2017 11:45 ET

Euroseas Ltd. Announces the Acquisition of Two Container Feeder Vessels plus Option to Acquire Two Additional Container Feeder Vessels, and Full Ownership of Euromar LLC

MAROUSSI, ATHENS, GREECE--(Marketwired - Sep 12, 2017) - Euroseas Ltd. (NASDAQ: ESEA) (the "Company"), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that it signed a memorandum of agreement to purchase the M/V EM Athens and EM Oinousses, both feeder size containership vessels of 2,506 teu built in 2000. The Company also announced that it acquired the option to purchase from Euromar two additional container vessels, the M/V EM Corfu, a feeder size containership vessel of 2,556 teu built in 2001, and the M/V Akinada Bridge, a post-panamax size container vessel of 5,600 teu built in 2001 until September 30, 2017. The vessels are to be acquired for a combined amount of about $25 million from Euromar LLC ("Euromar"), a wholly-owned subsidiary of the Company that previously was partially owned by the Company, as discussed below. The Company plans to finance the acquisitions with a combination of debt and equity. The vessels are expected to be delivered to the Company in the fourth quarter of 2017.

Furthermore, the Company announced that it acquired the 85.714% interest in Euromar it did not already own for nominal cost. As a result of the acquisition, Euromar, which was a joint venture among the Company and two private equity firms, became a wholly-owned subsidiary of the Company. The Company has provided no guarantees to Euromar's lenders, and none of the lenders has any recourse against the Company. Euromar, in addition to the four vessels sold or expected to be sold as described above, owns five other vessels, four of which are feeder containerships and one Intermediate size containership.

Aristides Pittas, Chairman and CEO of Euroseas, commented: "We are very pleased to proceed with the acquisition of the four container vessels, which increases our fleet in the containership feeder sector and is accretive to our shareholders. We are further pleased to take full ownership of Euromar and we are looking forward to working constructively with its lenders to maximize the value of its remaining vessels for the benefit of our shareholders and all parties involved. We are encouraged by the stronger drybulk and containership markets during the last few months and we hope to be able to capitalize on the continuing improvement of both sectors for the benefit of our shareholders."

About Euroseas Ltd.:
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA.

Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2008 certified affiliated ship management company which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

Including the four vessels mentioned above and the five additional vessels owned by Euromar, the Company has a fleet of 23 vessels in the water, including one Kamsarmax drybulk carrier, three Panamax drybulk carriers, one Ultramax drybulk carrier, one Handymax drybulk carrier, sixteen Feeder containerships and one post-panamax containership; in addition to the fleet in the water, the Company has a Kamsarmax newbuilding contract. With the addition of the Kamsarmax newbuilding, Euroseas will have seven drybulk carriers with a total cargo capacity of 499,753 dwt, and after the acquisitions described above and the five additional vessels owned by Euromar, the Company will have seventeen containerships with a total cargo capacity of 39,279 teu.

Forward Looking Statement: This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels and container ships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Visit our website www.euroseas.gr

Contact Information

  • Company Contact
    Tasos Aslidis
    Chief Financial Officer
    Euroseas Ltd.
    11 Canterbury Lane
    Watchung, NJ 07069
    Tel. (908) 301-9091
    E-mail: aha@euroseas.gr

    Investor Relations / Financial Media
    Nicolas Bornozis
    President
    Capital Link, Inc.
    230 Park Avenue, Suite 1536
    New York, NY 10169
    Tel, (212) 661-7566
    E-mail: euroseas@capitallink.com