By Devika Patel
Knoxville, Tenn., Aug. 5 - Omega Navigation Enterprises, Inc. announced it will sell a $5.25 million secured convertible promissory note to its chief executive officer and largest shareholder, George Kassiotis.
The note will bear interest at 4% per year.
Kassiotis may convert the loan into a maximum of 8.75 million common shares after one year. The conversion price of $0.60 represents a 68.09% discount to the closing share price of $1.88 on Aug. 4.
Proceeds will be used to satisfy short-term liquidity requirements and fund part of the contracted equity contributions for the company's new building program.
Piraeus, Greece-based Omega Navigation transports dry cargo products and crude and refined petroleum products.
| Issuer: | Omega Navigation Enterprises, Inc.
|
| Issue: | Secured convertible note
|
| Amount: | $5.25 million
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion price: | $0.60
|
| Conversion ratio: | Into 8.75 million shares
|
| Warrants: | No
|
| Investor: | George Kassiotis
|
| Pricing date: | Aug. 5
|
| Stock symbol: | Nasdaq: ONAV
|
| Stock price: | $1.82 at close Aug. 5
|
| Market capitalization: | $28.27 million
|
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