Seanergy Marine announces share capital Accretion plan, CEO stock purchases

Seanergy Maritime has authorized a new $25M buyback program which can be utilized to repurchase the company’s common shares and other securities. The company will also fully repay its last remaining convertible note pursuant to the terms of the note. The note bears a 5.5% coupon, it is the last from a series of convertible notes with aggregate original notional amount of $38.7M and $3.2M face value remains outstanding. The full repayment of the note will preempt potential dilution upon conversion. Seanergy has, since August 2021, initiated three buyback programs of $32M. The company has also repurchased $0.81M of outstanding warrants in January 2023 through a tender offer that was launched in November 2022, and repaid $8M of convertible notes in January 2023, under a scheduled repayment. The aggregate capital committed by the company for securities repurchases in the last two years, including the upcoming convertible note repayment, is $40.2M.Seanergy has also filed a prospectus supplement under which it may offer and sell common shares having an aggregate offering price of up to $30M from time to time. The company’s objective is to use a portion of the net proceeds under the ATM Program to fund the new buyback program, taking advantage of share price volatility, without affecting materially its healthy liquidity reserves. In addition, it intends to use the net proceeds for general corporate purposes, Seanergy’s Chairman & CEO Stamatis Tsantanis intends to purchase an additional aggregate of up to $1M in common shares of the company in the open market. Tsantanis has already purchased 200K Seanergy shares in the open market through various dates in 2023 to date for $1,101,167, resulting in an average purchase price of $5.43 per share.