Greek shipowner Euroseas announced that it has received regulatory approval to spin off its drybulk fleet into a separate company named EuroDry Ltd.
The company added that the application of EuroDry Ltd. for listing on the NASDAQ Capital Market under the symbol “EDRY” has been approved.
EuroDry is a middle range drybulk owner that owns six vessels, three of which are newbuildings, one Ultramax and two Kamsarmaxes.
“We believe that this separation will unlock the value inherent in our fleet which is currently trading at a significant discount to its net asset value. We believe that by forming “pure” play companies we can more easily be compared to our peers and this is expected to result in a significant increase in our value for our shareholders as our sector-focused companies should trade closer to their NAV. We also believe that separate drybulk and containership investment options will give our shareholders the flexibility to adjust their holdings, if they so wish, between the two sectors,” Aristides Pittas, Chairman and CEO of Euroseas commented.
As disclosed, the company’s shareholders will receive one share of EuroDry Ltd. for every five shares they own in the company. The U.S - listed Euroseas Ltd. will resume its business as a feeder containership public company, with a fleet of eleven vessels.
Pittas added that the two companies plan to tap into the growth opportunities in each of the two sectors to increase the size of the duo.
“Each of them being a public company with a cost-effective operating structure could be attractive to other small or large private fleets looking for opportunities to grow and obtain a public listing,” he concluded.