Benzinga | Sep 7, 2021 03:21PM EDT

Euroseas To Acquire M/V Piraeus Trader Vessel For $25.5M

* Euroseas Ltd. (NASDAQ:ESEA) has agreed to acquire M/V Piraeus Trader, a 1,740 teu container feeder vessel built-in 2006, for $25.5 million.

* The vessel is expected to be delivered by October 2021 and will be renamed M/V Jonathan P.

* The vessel will enter into a three-year time charter contract for about $26,700 per day net to the company.

* Euroseas plans to fund the purchase with its own funds and a bank loan. It held cash and equivalents of $11.04 million as of June 30.

* This acquisition represents a transaction with limited downside risk given the three-year charter contract. This charter will contribute about $22 million of EBITDA during the period of the contract.

* The company now has a fleet of 15 vessels comprising of 10 Feeder and 5 Intermediate containerships.

* Price Action: ESEA shares are trading lower by 2.77% at $22.80 on the last check Tuesday.