NewLead Holdings Ltd. yesterday announced that the Company received a capital contribution of industrial metal valued at $236.4 million for a 36.8% equity interest in NewLead.
Michael Zolotas, President and Chief Executive Officer of NewLead, stated, "this significant investment demonstrates confidence in the management team and the future of NewLead. The investment will provide valuable collateral for loans funding our capital-intensive activities and provides a solid platform to execute on our diversified growth strategy."
Upon completion of this transaction, it is expected that NewLead will have a total of 701,904,963 shares of common stock outstanding. NewLead will issue, following NASDAQ's approval, unregistered shares in exchange for the new investment. The new shareholder has agreed, subject to certain limited exceptions, not to pledge, borrow or dispose of the NewLead shares or otherwise transfer ownership of the shares until June 30, 2014. The new shareholder will not have board representation or other rights.
The value of the industrial metal was established on January 7, 2013 by an independent appraiser. The foreign currency exchange rate on January 7, 2013 was used for currency translation.
NewLead Holdings Ltd. is an international, vertically integrated shipping and commodity company that manages product tankers and dry bulk vessels. NewLead currently controls four vessels, two tankers and two dry bulk vessels.