Star Bulk Carriers (stock symbol: [t]SBLK[/t]), which recently announced that the company had extended the expiration date of its warrants from December 15, 2009 to March 15, 2010, has announced that it is not going to proceed with its planned Registered Exchange Offer that would have provided the warrant holders with an opportunity to exchange their warrants for new warrants with an expiration date of March 15, 2011.
When the company announced the Registered Offering, it disclosed that the directors owned 1,132,500 warrants.
Star Bulk Carriers Corp. Announces Decision Not to Proceed With Offer for Warrant Exchange
Press Release Source: Star Bulk Carriers Corp. On Monday January 11, 2010, 4:38 pm EST
ATHENS, GREECE--(Marketwire - 01/11/10) - Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (NASDAQ:SBLK - News), today announced that the Company has determined not to proceed with a previously announced plan to conduct an exchange offer to holders of its 5,916,150 outstanding warrants to purchase shares of common stock, par value $0.01 per share, of the Company (the "Existing Warrants"). Each Existing Warrant currently entitles the holder to purchase one share of common stock at an exercise price of $8.00 per share and expires at 5 p.m. New York City time on March 15, 2010.
The Company had planned to conduct the exchange offer whereby each Existing Warrant would have been eligible, upon payment of a fee per warrant, to be exchanged for a new warrant to purchase one share of common stock of the Company at an exercise price per share to be determined at a future date and with an expiration date of March 15, 2011. The Company has carefully evaluated current market conditions, including the recent trading prices of the Company's common stock on the Nasdaq Global Market, and determined that it currently would not be in the best interests of the Company's shareholders to effect the exchange offer. Directors of the Company currently own an aggregate of 1,132,500 Existing Warrants.
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