Nasdaq-listed containership owner Diana Containerships has entered into a securities purchase agreement with Kalani Investments Limited, registered in the British Virgin Islands, targeting USD 150 million in net proceeds.
“The company intends to use the net proceeds from the sale of the offered securities for general corporate purposes and/or to repay indebtedness under one or more of our existing credit facilities, ” the company said announcing the deal.
The agreement would entail the sale of 3,000 newly-designated series B-1 convertible preferred shares, preferred warrants to purchase 6,500 series B-1 convertible preferred shares and preferred warrants to purchase 140,500 newly-designated series B-2 convertible preferred shares.
The gross proceeds from the sale of the 3,000 series B-1 convertible preferred shares will be approximately USD 3 million. The company may further receive USD 6.5 million if all of the series B-1 preferred warrants are exercised and USD 140.5 million if all of the series B-2 preferred warrants are exercised, totaling in USD 150 million.
In mid-February, Diana said that its full-year 2016 net loss widened to USD 149 million from a net loss of USD 17.5 million seen in 2015.
The loss for 2016 includes USD 118.9 million of impairment charges for seven of the company’s vessels and USD 2.9 million of direct sale and other charges for two ships.