Source: FreeSeas Inc. FreeSeas Announces Meeting Date for its 2010 Annual Meeting of Shareholders and Proposal to Approve Reverse Split PIRAEUS, Greece, Aug. 19, 2010 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE) (Nasdaq:FREEZ) ("FreeSeas" or the "Company"), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of eight Handysize vessels and two Handymax vessels, today announced that its 2010 Annual Meeting of Shareholders will be held on September 30, 2010. In addition to the election of two directors and the ratification of the appointment of the Company's independent auditors, the Company is proposing that its shareholders approve a 1-for-5 reverse split of its common stock. Upon approval of the proposal, the Company's outstanding Class Z warrants will be proportionately adjusted in accordance with the terms of the warrants.
Mr. Ion Varouxakis, Chairman and CEO, noted, "We propose to undertake this reverse split on our own accord, at a time we believe our stock is undervalued and the outlook for our Company is positive. We believe that raising our stock price above $5.00 will appeal to a broader universe of institutional investors, while also enabling our retail investor base to trade on margin."
Shareholders of record as of the close of business on August 23, 2010 will be entitled to vote at the Company's Annual Meeting. The details are as follows:
Details of Annual Meeting
Location: 89 Akti Miaouli & 4 Mavrokordatou Str. Piraeus, 185 38, Greece Phone: +30 210 4528770 Fax: +30 210 4291010 Time: 15:00 Greek time, 08:00am EST time
In my opinion a reverse split is a kiss of death! I've been involved in a few over the past few years and after the reverse split comes bankruptcy!!! It appears there is a lot of smoke being blown here to make things sound rosy. Better management & less games might be the answer for success.