Reverse Splits

[sludgehound]

FREE another R/S 1-2 up to 1-200

Athens , April 11, 2016 (GLOBE NEWSWIRE) --     

Athens, Greece , April 11, 2016 - FreeSeas Inc. (Nasdaq: FREE) (“FreeSeas” or the
“Company”), a transporter of dry-bulk cargoes through the ownership and
operation of a fleet of Handysize vessels and an owner of a controlling stake in
a company commercially operating tankers, announced today that at the special
meeting of the Company’s shareholders held on April 8, 2016 , the shareholders
approved three proposals, as follows:

granted discretionary authority to the Company’s board of directors to first, (A) amend the Amended and Restated Articles of Incorporation of the Company to effect one or more consolidations of the issued and outstanding shares of common stock, pursuant to which the shares of common stock would be combined and reclassified into one share of common stock at a ratio within the range from 1-for-2 up to 1-for-200 (the “Reverse Stock Split”) and (B) determine whether to arrange for the disposition of fractional interests by shareholder entitled thereto, to pay in cash the fair value of fractions of a share of common stock as of the time when those entitled to receive such fractions are determined, or to entitle shareholder to receive from the Company’s transfer agent, in lieu of any fractional share, the number of shares of common stock rounded up to the next whole number, provided that, (X) that the Company shall not effect Reverse Stock Splits that, in the aggregate, exceeds 1-for-200, and (Y) any Reverse Stock Split is completed no later than the first anniversary of the date of the special meeting; ratified the potential issuance of more than 20% of the Company’s issued and outstanding common stock at a price that is less than the greater of book or market value in accordance with (i) a securities purchase agreement between the Company and MTR3S Holding Ltd. , dated March 1, 2016 ; (ii) a debt settlement agreement and release between the Company and Intermodal Shipbrokers Co. , dated January 19, 2016 ; (iii) a securities purchase agreement between the Company and Mordechai Vizel , dated January 19, 2016 ; (iv) a securities purchase agreement between the Company and Alpha Capital Anstalt, dated January 6, 2016 ; (v) a debt settlement agreement between the Company and Sichenzia Ross Friedman Ference LLP , dated October 7, 2015 ; and (vi) a securities purchase agreement between the Company and Service Trading Company, LLC , dated August 20, 2015 ; andapproved the potential issuance of more than 20% of the Company’s issued and outstanding common stock at a price that is less than the greater of book or market value in accordance with the following potential future transactions: (i) one or multiple purchase agreements for the sale of common stock or securities convertible into common stock up to $2 million for working capital at a discount to the market price of up to 50%, to be entered into within 180 days of the Special Meeting, (ii) one or multiple debt settlement agreements for the sale of common stock or securities convertible into common stock of up to $6 million for the settlement of trade or bank debt at a discount to the market price of up to 50%, to be entered into within 180 days of the Special Meeting, and (iii) a purchase agreement for the sale of common stock or securities convertible into common stock up to $15 million for asset acquisitions at a discount to the market price of up to 65%, to be entered into within 180 days of the Special Meeting.
About FreeSeas Inc.

FreeSeas Inc. is a Marshall Islands corporation with principal offices in
Athens, Greece . FreeSeas is engaged in the transportation of drybulk cargoes
through the ownership and operation of drybulk carriers and also is an owner of
a controlling stake in a company commercially operating tankers. Currently, it
has a fleet of Handysize vessels. FreeSeas' common stock trades on the Nasdaq
Capital Market under the symbol FREE. Risks and uncertainties are described in
reports filed by FreeSeas Inc. with the SEC , which can be obtained free of
charge on the SEC's website at  http://www.sec.gov . For more information about
FreeSeas Inc. , please visit the corporate website,  www.freeseas.gr .