buybacks of its securities consisting of:

(i) $8 million of its outstanding convertible note with 5.5% coupon and a conversion price of $1.20 per share (the “Note”), pursuant to the terms of the Note, and

(ii) $0.8 million in 4,038,114 warrants at $0.2 per warrant, pursuant to the recently completed tender offer. The repurchased securities represent approximately 47% of the outstanding Class E Warrants to purchase an equal number of shares at an exercise price of $0.524 per share.

Moreover, Seanergy’s Chairman & CEO, Stamatis Tsantanis, has since August 2022 purchased 300,000 of the Company’s common shares in the open market.

The Company has also announced today that a Special General Shareholders Meeting will be held on February 7, 2023,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.

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, 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 addressed decisively 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.

“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.

“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. In addition to ensuring Nasdaq’s listing standards are met, we believe that eliminating trading uncertainties and consolidating the outstanding number of our common stock will be very beneficial for our shareholders and will also increase the investor outreach for our stock attracting fundamental, longer-term shareholders.

“We are excited to move forward stronger after addressing share-price related overhang and in conjunction with our significant recent progress in returning capital to our shareholders. This is attested by the $35.5 million in securities repurchases since December 2021, in combination with the $22.5 million in cash dividend distributions since April 2022.”

Buyback of Convertible Notes

On January 3, 2023, the Company repaid $8.0 million of the Note held by Jelco Delta Holding Corp. (“JDH”) at its face value, without any prepayment cost or additional consideration and in accordance with the terms of the Note. Based on an exercise price of $1.20 per share, the buyback has pre-empted potential dilution of 6.67 million shares. In addition, considering that the Note carries a fixed coupon of 5.5% p.a., the Company will realize annual interest savings of $440,000. There are approximately $3.2 million currently outstanding under the only remaining convertible note. Since December 2021, the Company has repurchased in total $31.95 million of its convertible notes held by JDH, preempting potential dilution of 26.63 million shares.

Buyback of Class E Warrants

Pursuant to the Tender Offer that was launched on November 30, 2022, the Company 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. The adjusted exercise price of the Class E Warrants was $0.524 per share. 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.

Open Market Purchases by the CEO

Seanergy’s Chairman & CEO, Stamatis Tsantanis, has purchased in January 2023 an additional 250,500 of the Company’s common shares in the open market. Mr. Tsantanis has purchased in total 300,000 common shares of Seanergy in the open market since August 2022.
Source: Seanergy Maritime

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