FreeSeas Inc., a transporter of dry-bulk cargoes through the ownership and operation of a fleet of Handysize and Handymax vessels, yesterday announced that it has entered into a Standby Equity Distribution Agreement ("SEDA"), with YA Global Master SPV Ltd. ("YA Global"), a fund managed by Yorkville Advisors, LLC ("Yorkville").
Under the terms and conditions of the SEDA, the Company has the right, but not the obligation, to sell, and YA Global will be obligated to purchase, up to $3.2 million of common stock in tranches, at the Company's sole discretion, over the course of 24 months.
The SEDA permits the Company to terminate the agreement, upon 15 days' prior written notice, at any time when no advances are pending. The Company intends to use the net proceeds from the SEDA for general corporate purposes.
Source: FreeSeas Inc.