Dilution Watching & Huge A/S Warning

[sludgehound]

FREE $25M offering to cut CS debts
Ok it's not billions & billions but after back/back R/S 25M shares is a bunch. Effectively a doubling 27M to 50+M. Guess beats a 4th R/S.

AH 16:18 ET
ATHENS, Greece, May 22, 2014 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq:FREE) (" FreeSeas' ' or the "Company''), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of five Handysize vessels and one Handymax vessels, announced today that it entered into a placement agent agreement with Dawson James Securities, Inc. on May 21, 2014 , to sell up to $25 million of Series D Convertible Preferred Stock and Series C Warrants. The offering is expected to close on May 28, 2014 . The securities will be sold in 250,000 units, at a purchase price of $100 per unit, with each unit consisting of one share of our Series D Convertible Preferred Stock and Series C Warrants to purchase 200% of the shares of common stock underlying the Series D Preferred Stock, at an exercise price of 130% of the Series D Preferred Stock conversion price on the initial issuance date of the Series D Preferred Stock, rounded to the nearest whole cent.
Each share of Series D Preferred Stock will have a stated value of $100 and will be convertible into a number of shares of common stock equal to $100 divided by the conversion price in effect at the time of conversion. The initial conversion price of each share of Series D Preferred Stock will be the lesser of (i) $1.09 (the closing bid price of our common stock on May 16, 2014 ) and (ii) the greater of (1) the closing bid price of our common stock on the date immediately prior to the closing of this offering (which is expected to be May 28, 2014 ) and (2) $0.981 .
Following the closing of the offering, presuming the maximum offering is completed, FreeSeas will pay approximately $22 million of the offering proceeds to Credit Suisse to eliminate all of its debt obligations owed to Credit Suisse , which are approximately $37 million . Upon Credit Suisse's receipt of such $22 million , Credit Suisse will also cancel all the remaining debt owed by FreeSeas and its subsidiaries, which is approximately $15 million . Following such payment and cancellation, FreeSeas will no longer owe any amounts to Credit Suisse , Credit Suisse will release any and all liens it has on the assets of the Company and its subsidiaries and Credit Suisse will release all corporate guarantees received from the Company's subsidiaries. 
Any remaining offering proceeds will be used for general corporate purposes. 
Dawson James Securities, Inc. is acting as the exclusive placement agent on a best efforts basis in connection with this offering.
A registration statement on Form F-1 relating to this offering has been filed with the Securities and Exchange Commission and is effective. A preliminary prospectus relating to the offering has been filed with the SEC and is available on the SEC's website at www.sec.gov. Copies of the final prospectus relating to the offering, when available, may be obtained from Dawson James Securities, Inc. , 1 North Federal Highway , Boca Raton, Florida 33432, [phone], or from the above-mentioned SEC website.
The foregoing summaries of the offering, the securities to be issued in connection therewith and the full terms and conditions of the Series D Preferred Stock and the Series C Warrant (including, without limitation, the exchange feature and the mandatory exercise feature contained therein) do not purport to be complete and are qualified in their entirety by reference to the definitive documents attached as exhibits to such Form F-1.