Globus Maritime (GLBS): Settles With Two Lenders; Shares Dip

Bolton Flautt  |

Settling old debts and communicating in an attempt to make things right are signs of integrity and trust. Unfortunately, the short-term effects on stock price when news like this comes out are usually in the red. Globus Maritime Limited (GLBS) is one of the more active stocks in the small cap sector today with quite a bit of selling taking place. In late trading, shares of Globus were down 35 percent at $0.84 per share on volume of more than 1.6 million shares. Globus has a market capitalization of $8.62 million and an average daily volume of 290,724 shares. The company has a 52-week range between $0.05 and $1.78 per share.

Globus is an Athens, Greece based dry bulk shipping company who last Wednesday, announced that it had reached an agreement with two of Lenders – DVB Bank and HSH Nordbank AG. The amended agreements were said to be amicable and were in relation to original agreements dated June 20, 2011 and February 27, 2015, respectively.

According to the press release, Globus was able among other things to receive waivers and relaxations on its loan covenants as well as defer installment loan payments due in 2016. Final documents have not yet been executed with HSH Nordbank AG.

Athanasios "Thanos" Feidakis, President, Chief Executive Officer and Chief Financial Officer of Globus Maritime Limited, commented in the press release, "We are very pleased with our agreements with both DVB Bank and HSH Nordbank AG. With these agreements we were able to accomplish waivers or relaxations to our financial covenants for the period of March 2016 through March 2017 as well as defer principal payments due in 2016."

Globus is an integrated dry bulk shipping company that provides marine transportation services worldwide and presently owns, operates and manages a fleet (6 vessels) of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes internationally.

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Companies

Symbol Name Price Change % Volume
GLBS Globus Maritime Limited 1.40 -0.19 -11.95 259,811 Trade

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