Athens, May 26, 2015 (GLOBE NEWSWIRE) -- Greece, May 26, 2015 - FreeSeasInc. ( Nasdaq CM: FREE)(" FreeSeas" or the " Company"), atransporter of dry-bulk cargoes through the ownership and operationof a fleet of Handysize vessels, announced today that it hasentered into an agreement with a group of Norwegian based investorsfor the financing of the acquisition of assets valued up to US$15million. Upon the vessel acquisition by the investors, theirship-owning entities will enter into long-term bareboat charteragreement(s) with the Company's subsidiaries including a number ofpurchase options in the Company's favour, on a profit-sharing basiswith the investors. The Company shall identify suitable acquisitioncandidates within a six-month period. The investors shall beresponsible for providing suitable bank financing of approximatelyup to 50% to 60% to enable the completion of the transaction.Depending on the final leverage and acquisition price, a charterhire rate of up to $5,600 per day shall be payable after thecommencement of the charter. Concurrently with the transaction, the Companyhas agreed to place a mortgage on the M/V "Free Maverick" assecurity. The Company has the option to replace the vessel withcash security at any time. If however, the vessel is not replacedby cash security, $1,400 per day shall be payable upon thecommencement of the bareboat charter of the acquisition vessel. In addition, the M/V "Free Hero" and M/V "FreeGoddess" have been sold for consideration as part of the securitypackage, and the Company's subsidiaries have entered into long-termbareboat agreements for such vessels with purchase options at adaily hire rate of $1,100 per vessel. The total agreed security provided by theCompany amounts to US$9 million, with a cash release of up to US$2million in stages. Mr. Ion G. Varouxakis Chairman President andChief Executive Officer of the Company, commented: "We are pleasedto enter into these agreements, which enable the Company toleverage its balance sheet for fleet expansion at an opportune timefor counter-cyclical investments in the dry-bulk market. Beingpositioned as a buyer in a falling asset prices environment webelieve is the best possible strategy. The demonstrated ability ofthe Company to raise capital even in difficult environments is atestament to the dedication and determination of management and theboard to succeed in its goal to turn around the Company toprofitability."
About FreeSeas Inc.FreeSeas Inc. is a Marshall Islands corporationwith principal offices in Athens, Greece. FreeSeas is engaged inthe transportation of drybulk cargoes through the ownership andoperation of drybulk carriers. Currently, it has a fleet ofHandysize and Handymax vessels. FreeSeas' common stock trades onthe Nasdaq Capital Market under the symbol FREE. Risks anduncertainties are described in reports filed by FreeSeas Inc. withthe SEC, which can be obtained free of charge on the SEC's websiteat http://www.sec.gov. For more information about FreeSeas Inc.,please visit the corporate website, www.freeseas.gr. Forward-Looking Statements This press release contains forward-lookingstatements (as defined in Section 27A of the Securities Act of1933, as amended, and Section 21E of the Securities Exchange Act of1934, as amended) concerning future events and the Company's growthstrategy and measures to implement such strategy. Words such as''expects,'' ''intends,'' ''plans,'' ''believes,'' ''anticipates,''''hopes,'' ''estimates,'' and variations of such words and similarexpressions are intended to identify forward-looking statements.Although the Company believes that the expectations reflected insuch forward-looking statements are reasonable, no assurance can begiven that such expectations will prove to be correct. Thesestatements involve known and unknown risks and are based upon anumber of assumptions and estimates, which are inherently subjectto significant uncertainties and contingencies, many of which arebeyond the control of the Company. Actual results may differmaterially from those expressed or implied by such forward-lookingstatements. Factors that could cause actual results to differmaterially include, but are not limited to, changes in the demandfor dry bulk vessels; competitive factors in the market in whichthe Company operates; risks associated with operations outside theUnited States; and other factors listed from time to time in theCompany's filings with the Securities and Exchange Commission. TheCompany expressly disclaims any obligation or undertaking torelease publicly any updates or revisions to any forward-lookingstatements contained herein to reflect any change in the Company'sexpectations with respect thereto or any change in events,conditions or circumstances on which any statement is based.