Oslo, [1 February], 2017 / Songa Bulk AS (Merkur:
SBULK-ME) (the "Company" or "Songa Bulk") is pleased to
announce that it has taken delivery of the Songa Glory,
a 58,680 DWT Supramax bulk carrier built by Nantong
COSCO KHI Shipbuilding (NACKS) in 2012. The vessel is
the third vessel delivered to the Company.
The purchase price for the vessel was USD 14.85m, which
the Company has settled from its existing cash
reserves. The seller is North East Star Maritime, an
affiliated company of Equinox Maritime (the "Seller").
The Seller has undertaken to reinvest USD 5,000,000 of
the purchase price in the Company and board of the
Company resolved on 31 January 2017 to issue 1,000,000
shares in a directed placement to the Seller at a
subscription price of USD 5 per share. The
extraordinary general meeting of the Company dated 6
December 2016 has approved a power of attorney to the
board to issue the consideration shares.
Following the issue of the consideration shares, the
Company will have issued 15,860,000 shares, each with a
par value of NOK 5. The consideration shares are
expected to be issued on or about [3] February 2017.
The consideration shares will have the same rights as
the ordinary shares of the Company in all respects.
Following completion of the acquisition and issue of
the consideration shares, Mr. Ghikas J. Goumas will
join the board of directors of the Company as approved
by the extraordinary general meeting of the Company on
6 December 2016. Mr. Goumas and related parties
(through J.G. Goumas Shipping Co.) are significant
shareholders of the Seller. The Seller will, following
delivery of the consideration shares, control 6.305 %
of the shares and votes of the Company.
The Company has entered into a warrant agreement dated
4 November 2016 between the Company and Blystad
Shipholding AS (a company controlled by Arne Blystad),
Billung Bulk AS (controlled by Herman Billung) and PK
Shipping AS (controlled by Per Kristian Aamlid)
(together the "Holders"). The terms of the warrant
agreement are further described in the admission
document published by the Company dated 16 December
2016. Under the warrants agreement the Holders have a
right to be issued warrants representing 7.5 % of any
share issues made by the Company (up to USD 100m of
capital raised). Consequently, the board has approved,
and will propose that the next general meeting of the
company approves an issue of 75,000 warrants to the
Holders on the terms of the agreement:
Blystad Shipholding AS: 33,750 new warrants (with a
total holding of 527,344 warrants after issue)
Billung Bulk AS: 33,750 new warrants (with a total
holding of 527,344 warrants after issue)
PK Shipping AS: 7,500 new warrants (with a total
holding of 117,188 warrants after issue)
Each warrant gives the Holder a right to subscribe for
one share at the price used in the share issue towards
Equinox. As per the agreement, 1/3 of the warrants will
vest once the share price of the Company increases to
NOK 52.04, NOK 62.45 and NOK 72.86 respectively. The
warrants are otherwise issued on the terms of the
existing warrant agreement.