FreeSeas Announces Exercise of Over-Allotment Option
PIRAEUS, Greece, July 27, 2009 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEW) (Nasdaq:FREEZ) ("FreeSeas" or the "Company"), a transporter of drybulk cargoes through the ownership and operation of a fleet of seven Handysize vessels and two Handymax vessels, announced today that the underwriters of its common stock offering exercised their over-allotment option to purchase an additional 1,309,715 shares of its common stock at $1.80 per share for additional gross proceeds of $2,357,487.
The option was granted in connection with the Company's common stock offering of 8,731,436 shares of its common stock, which priced on July 22, 2009. Gross proceeds from the common share offering and the over-allotment option total approximately $18,074,072. The Company expects the offering to close on July 28, 2009.
Proceeds from the offering will be used primarily for the acquisition of an additional drybulk vessel, as well as for the repayment of debt and general working capital purposes. Dahlman Rose & Company is serving as the sole book-running manager for the offering, and Rodman & Renshaw, LLC is acting as co-manager.
The shares are being sold under the Company's previously filed shelf registration statement, which was declared effective by the Securities and Exchange Commission on May 14, 2008. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company, nor shall there be any sale of these securities in any state or jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering may be made only by means of a prospectus and the related prospectus supplement, copies of which may be obtained from Dahlman Rose & Company Prospectus Department; 212-702-4521 or ecm@dahlmanrose.com.
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