Seanergy Maritime Holdings Corp. Announces Agreement to Acquire an Additional Capesize Vessel

Rhea-AI Summary

Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) has announced a definitive agreement to purchase a Capesize vessel, which will be renamed M/V Tradership. Built in 2006 in Japan, the vessel has a cargo capacity of approximately 177,000 dwt and will increase Seanergy's fleet to 12 ships, totaling 2,103,042 dwt. The $17 million purchase price will be funded from cash reserves. Expected delivery is in Q1 or early Q2 2021, aligning with a favorable Capesize market, with potential incremental net revenue exceeding $5 million for the year based on current freight rates.

Positive

• Acquisition of a high-quality Capesize vessel expected to enhance revenue by over $5 million in 2021.
• Increased fleet size to 12 vessels provides greater operational leverage in a stronger Capesize market.
• No anticipated capital expenditures for at least two years due to completed special survey and ballast water system installation.

Negative

• None.

GLYFADA, Greece, Feb. 16, 2021 (GLOBE NEWSWIRE) -- Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP) announced today that it has entered into a definitive agreement with an unaffiliated third party to purchase a Capesize vessel (the “Vessel”).

The Vessel was built in 2006 at a reputable shipyard in Japan, has a cargo-carrying capacity of approximately 177,000 deadweight tons (“dwt”) and shall be renamed M/V Tradership. The Vessel is expected to be delivered towards the end of the first quarter or early in the second quarter of 2021, subject to the satisfaction of certain customary closing conditions. Following her delivery, the size of the Company’s fleet will increase to 12 Capesize vessels with an aggregate cargo capacity of approximately 2,103,042 dwt.

The special survey and ballast water system installation for the Vessel were completed recently by the current owner and therefore the Company does not anticipate incurring any off-hire or significant capital expenditure for this Vessel at least for the next two years. The gross purchase price of $17 million is expected to be funded with cash on hand.

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:

“We are pleased to announce another timely acquisition of a high quality Capesize vessel built by a first-class shipyard in Japan. The addition of the M/V Tradership to our fleet is further increasing our operating leverage as a leading pure-play Capesize company.

The Vessel is expected to be delivered to us promptly, during a greatly improved Capesize market. The average of the 5 time-charter routes of the Baltic Capesize is currently about 60% higher than the same period average for the last 5 years, while the Capesize forward freight contracts (“FFA”) for the second half of 2021 are trading at above $19,400 per day. Based on these FFA rates, the incremental net revenue from this acquisition may exceed $5 million for the remainder of the year assuming delivery at the end of the first quarter of 2021.

Seanergy is well placed to benefit from the substantial improvement of the market with its entire fleet currently employed under spot charters or long-term index-linked time charters, directly tied to the Capesize index.

We strongly believe that our segment represents the best fundamentals in the dry bulk industry. We will continue to actively pursue accretive growth transactions aiming to improve shareholder returns for the years to come.”

Company Fleet upon Vessel’s delivery:

Vessel Name			Vessel Class	Capacity (DWT)		Year Built		Yard	Employment
Partnership			Capesize	179,213		2012		Hyundai	T/C Index Linked
Championship			Capesize	179,238		2011		Sungdong	T/C Index Linked
Lordship			Capesize	178,838		2010		Hyundai	T/C Index Linked
Premiership			Capesize	170,024		2010		Sungdong	T/C Index Linked
Squireship			Capesize	170,018		2010		Sungdong	T/C Index Linked
Knightship			Capesize	178,978		2010		Hyundai	T/C Index Linked
Gloriuship			Capesize	171,314		2004		Hyundai	T/C Index Linked
Fellowship			Capesize	179,701		2010		Daewoo	T/C Index Linked
Geniuship			Capesize	170,058		2010		Sungdong	T/C Index Linked
Goodship			Capesize	177,536		2005		Mitsui Engineering	Voyage/Spot
Leadership			Capesize	171,199		2001		Koyo – Imabari	Voyage/Spot
Tradership			Capesize	176,925		2006		Japanese shipyard	Voyage/Spot
Total				2,103,042		12.2

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. Upon delivery of the new vessel, the Company's operating fleet will consist of 12 Capesize vessels with an average age of 12.2 years and aggregate cargo carrying capacity of approximately 2,103,042 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”.

Please visit our company website at: www.seanergymaritime.com

Forward-Looking Statements

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. Words such as "may", "should", "expects", "intends", "plans", "believes", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which 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, the Company's operating or financial results; the Company's ability to continue as a going concern; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company's filings with the SEC, its most recent annual report on Form 20-F. The Company's filings can be obtained free of charge on the SEC's website at www.sec.gov. Except to the extent required by law, 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.

For further information please contact:

Capital Link, Inc.
Daniela Guerrero
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com 

FAQ

What is the capacity of the newly acquired vessel by Seanergy Maritime?

The newly acquired vessel, M/V Tradership, has a cargo-carrying capacity of approximately 177,000 deadweight tons (dwt).

How much did Seanergy Maritime pay for the Capesize vessel?

Seanergy Maritime agreed to purchase the Capesize vessel for a gross purchase price of $17 million.

When is the expected delivery date of the M/V Tradership?

The M/V Tradership is expected to be delivered towards the end of the first quarter or early in the second quarter of 2021.

How will the acquisition of M/V Tradership impact Seanergy's revenue?

The acquisition is projected to generate incremental net revenue exceeding $5 million for Seanergy for the remainder of 2021.

What is Seanergy's fleet size after the acquisition?

After the acquisition, Seanergy's fleet size will increase to 12 vessels with a total capacity of approximately 2,103,042 dwt.