Globus Maritime (GLBS) Reports $5M Equity Private Placement and Conversion of Certain Outstanding Loans

November 28, 2016 2:55 PM EST

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Globus Maritime Limited (NASDAQ: GLBS) announced today that it has agreed to issue for gross proceeds of $5 million, an aggregate of 5 million shares of common stock, par value $0.004 per share and a warrant to purchase 25 million shares of common stock at a price of $1.60 per share, in a private placement to a private investor. The Company intends to use the proceeds from the sale of common shares and warrant for general corporate purposes and working capital including repayment of debt.

In connection with the private placement, the Company must terminate an aggregate of $20 million of the outstanding principal and interest of two loans with the relevant lenders in consideration of issuing 20 million shares and warrants exercisable for 7,380,017 common shares at a price of $1.60 per share. The Company expects approximately $1,212,835 (plus accrued interest through closing) to remain outstanding in the aggregate on both loans. In each instance, the outstanding amounts will continue to accrue under the respective loan agreements. Both lenders are related to the Company through common control.

The closing of the transactions described herein are subject to customary closing conditions. Mr. Georgios Feidakis, Globus's Chairman, stated, "we are very pleased with our new investor, this is a strategic initiative on our part to solidify the Company and look for new opportunities for growth which will enhance shareholder value."

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any other securities laws and may not be offered or sold in the United States or to a U.S. person absent registration or an applicable exemption from registration requirements.

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