Marathon Acquisition Corp (MAQ) Announces Increase and Conclusion of Share Repurchase Program

August 11, 2008 8:59 AM EDT

Marathon Acquisition Corp. (AMEX: MAQ) has concluded its share repurchase program. In addition to the previously announced $48 million share repurchase, Marathon has completed privately negotiated arrangements to purchase, subject to and contemporaneously with the closing of the merger with Global Ship Lease Inc., up to approximately 5 million additional shares of common stock for a purchase price of approximately $39.7 million. Additional financing for the share repurchases will be provided through (i) the purchase by Michael Gross of up to 1.1 million shares of common stock for a total purchase price of approximately $8.7 million, (ii) the purchase by CMA CGM of up to 1.1 million shares of common stock for a total purchase price of approximately $8.7 million, and (iii) the use of approximately $22.3 million of corporate cash. In addition, corporate cash will be increased by up to $7.1 million through the issuance of up to 0.9 million shares in lieu of cash as partial payment towards advisory and deferred underwriting fees.

The shareholder vote to approve the merger and related proposals is the remaining step to effecting the merger and consummating the transaction. The shareholder meeting is scheduled for Tuesday, August 12th, 2008. [SM]

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