Box Ships Inc. has commenced an underwritten offering of units consisting of its common shares and warrants.
The company intends to grant the underwriters of the offering a 45-day option to purchase an additional 15% of the units sold in the offering to cover over-allotments, if any.
In the event that at least $10.0 million of units are sold in the public offering, Neige International Inc., a company controlled by the company’s Chairman, President and Chief Executive Officer, has agreed to purchase, in a concurrent private placement at the public offering price, a number of units equal to 10% of the units sold in the public offering.
The net proceeds of the offering are expected to be used by the company for general corporate purposes, which may include the repayment of debt and the acquisition of vessels.
Maxim Group LLC is acting as sole book-runner and lead-managing underwriter of the offering.
Box Ships, April 10, 2014