FreeSeas Announces Extension and Reduction of Exercise Price of Class Z Warrants

the expiration date and reducing the exercise price of its Class Z warrants, currently listed under the ticker FREEZ. The expiration date of the Class Z warrants is being extended to August 12, 2011, from July 26, 2011. The exercise price for each Class Z warrant is being reduced to $0.36 per one-fifth (1/5) of a share of common stock, or $1.80 per whole share of common stock, from $5.00 per one-fifth (1/5) of a share, or $25.00 per whole share. Assuming all outstanding Class Z warrants are exercised, the number of FreeSeas' common stock will increase by 331,002.
Each Class Z warrant entitles the holder to purchase one-fifth (1/5) of a share of FreeSeas' common stock and the Class Z warrants are only exercisable for whole shares. All other terms of the Class Z warrants remain unchanged.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Piraeus, Greece. FreeSeas is engaged in the transportation of drybulk cargoes through the ownership and operation of drybulk carriers. Currently, it has a fleet of Handysize and Handymax vessels. FreeSeas' common stock and Class Z warrants trade on the NASDAQ Global Market under the symbols FREE and FREEZ, respectively.
Source: FreeSeas Inc.