FreeSeas Announces Entering into Term Sheet for Investment of USD 10 Mill

FreeSeas Inc., a transporter of dry-bulk cargoes through the ownership and operation of a fleet of six Handysize vessels and one Handymax vessel, announced today that it has entered into a non-binding term sheet with an institutional investor  for an investment of USD 10 million into the Company through the issuance of zero-dividend convertible preferred stock and warrants, subject to certain terms and conditions.

Mr. Ion G. Varouxakis, Chairman, President and CEO, commented as follows: “We are particularly pleased to announce that after our recent extinguishment of bank debt amounting to USD 30 million we are now in the process of securing  additional funds to be added on our balance sheet as fresh working capital and growth capital. We look forward to using such capital for the repositioning of the Company and towards executing on our plans for balance sheet turn around, and income and revenue growth.”

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FreeSeas, October 23, 2013