Seanergy Maritime (SHIP) Stock Pops On Capital News

Seanergy Maritime Holdings SHIP Stock News

Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) is making a run for the top in the market this morning, gaining around 20% early on. The gains come after the company announced the result of a successful capital raise. Here’s what’s happening:

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SHIP Stock Climbs As Company Says It Will Not Participate In Capital Market Raises

In the press release, Seanergy Maritime said that it s recent capital markets raise was so successful that it will pause its capital markets participation for the near term. Of course, the company will keep an eye on market activity and this pause from participation in capital markets won’t last forever.

Nonetheless, what it tells us is that for the time being, the fund raise is over and dilution is off of the table for the near term. So, how successful was the raise?

SHIP said that it raised about $30 million in gross proceeds trhough various transactions. Of course, $30 million is a lot of money and should be plenty of funding to get the company through several catalysts ahead.

In a statement, Stamatis Tsantanis, Chairman and CEO at SHIP, had the following to offer:

We are pleased to announce the successful closing of our most recent registered direct offering, which represents the culmination of our recent capital raising transactions. As a result of strong institutional interest, we raised more than $30 million and have further strengthened our balance sheet. This capital is highly accretive to our net asset value.

Our sector is emerging from a period of historical low rates, and as a result of our capital raising program, we believe Seanergy is in a strong position to capitalize on the improving market fundamentals.

This Is Exciting News

At first glance, you may not think that the success of this fund raising activity is a big deal, but there are a few things to think about. First and foremost, shipping sector stocks can fly under the right conditions.

However, what often holds these stocks back is fear that a dilutive transaction may be around the corner. With today’s announcement from Seanergy Maritime, there will be no dilutive transactions, at least in the near term. So, this weight is lifted, which will allow the stock to tick upward.

Moreover, the shipping sector is doing pretty well at the moment. With oil prices so low and storage facilities filling up, oil producers are looking for other storag options instead of looking to sell oil at such low prices. As such, many oil tankers are becoming stationary storage facilities. Not only does this reduce expenses, but it offers these companies, including SHIP an opportunity to charge more for the use of their ships.

So, the money couldn’t have come at a better time. The industry is trending in a positive direction and there are several moves ahead for SHIP. As such, investors should be watching this stock very closely ahead.

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1 thought on “Seanergy Maritime (SHIP) Stock Pops On Capital News”

  1. EVERYTHING IS GREAT BUT THERE IS 1 TYPO
    SHIP said that it raised about $30 million in gross proceeds ***trhough***various transactions. Of course, $30 million is a lot of money and should be plenty of funding to get the company through several catalysts ahead.

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