Top Ships Announces Share Repurchase Program, Fleet Update and Estimate of Net Asset Value
August 17 2020 - 10:45AM
TOP Ships Inc. (NASDAQ: TOPS) (the “Company”) today announced a
share repurchase program and fleet update.
Share Repurchase Program
The Company’s Board of Directors (the “Board”)
today authorized a share repurchase program under which the Company
may repurchase up to $5.1m of its outstanding common shares,
representing approximately 10% of the Company’s market
capitalization as of August 14, 2020, for a period of three months
(the “Repurchase Program”). The Board will periodically review the
Company’s Repurchase Program, and may decide to extend its term or
increase the authorized amount, by another 10% to 15%, that may be
repurchased thereunder.
Under the Repurchase Program, the Company may
repurchase common shares in privately negotiated or open-market
transactions in accordance with applicable securities laws and
regulations, including Rule 10b-18 of the Securities Exchange Act
of 1934, as amended, and pursuant to a trading plan adopted in
accordance with Rule 10b5‐1 of the Securities Exchange Act of
1934.
The specific timing and amount of repurchases,
if any, will be at the discretion of the Company’s management team,
and will depend upon a variety of factors, including market
conditions, regulatory requirements, capital allocation
alternatives, and other corporate considerations. The Company
is not obligated under the program to purchase any common shares.
The repurchase program may be suspended or discontinued at any
time.
Fleet Update
Fleet Profile |
As of August 17, 2020, our fleet consisted of ten 50,000 dwt
product/chemical tankers, out of which 2 are owned 50%, and two
159,000 dwt suezmax tankers. We also have newbuilding contracts for
the construction of three scrubber-fitted 50,000 dwt
product/chemical tankers and, and two scrubber-fitted suezmax
tankers. Our newbuilding vessels are expected to be delivered to us
during the first half of 2021. Following the delivery of our last
newbuilding, our fleet will consist of 15 vessels with an average
age of 2.3 years (with 2 vessels 50% owned). All of our vessels are
of eco design and are built in shipyards of the Hyundai group,
currently the largest shipbuilder in the world. In addition, all of
the vessels in our fleet, including our newbuildings, are of very
high specification and include enhancements in the hull, propellers
and other parts of the vessel to decrease fuel consumption and
reduce emissions. Furthermore, all of our vessels are fitted
with ballast water treatment equipment and seven of our operating
vessels have scrubbers installed and all of our newbuildings will
be fitted with scrubbers. |
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Charter Coverage |
As of June 30, 2020, all of the vessels in our fleet (including
newbuilding vessels but excluding joint venture vessels) are
employed on time charters with fixed terms, representing contracted
future revenue of $273m excluding options to extend. Our
customers include national, regional and international
companies. |
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Net Asset Value |
Management estimates the company’s NAV to be $180 million. This
translates into an NAV of $4.52 per share (based on number of
common shares currently outstanding) and $3.55 per share (on a
fully diluted basis - assuming exercise of Series B warrants and
conversion of convertible loan). |
About TOP Ships Inc.
TOPS is an international owner and operator of
modern, fuel efficient “ECO” tanker vessels currently focusing on
the transportation of crude oil and petroleum products.
Cautionary Note Regarding
Forward-Looking Statements
Matters discussed in this press release may
constitute “forward-looking statements” within the meaning of the
U.S. federal securities laws. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words “believe,”
“anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “may,” “should,” “expect” “pending” and similar
expressions identify forward-looking statements. The
forward-looking statements in this press release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, our management’s
examination of historical operating trends, data contained in our
records and other data available from third parties. Although we
believe that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond our control, we cannot assure you that we
will achieve or accomplish these expectations, beliefs or
projections.
For further information please contact:
Alexandros Tsirikos Chief Financial Officer TOP Ships Inc. Tel:
+30 210 812 8107 Email: atsirikos@topships.org
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