Seanergy Maritime Holdings Stock

Seanergy Maritime Holdings Corp., an international shipping company, specializing in the worldwide seaborne transportation of dry bulk commodities.

The company operates 16 Capesize vessels, with a cargo-carrying capacity of approximately 2,846,965 dwt and an average fleet age of 12.1 years. The company is the only pure-play Capesize shipping company listed in the U.S.

Business Strategy

The company intends to continue to review the market from time to time in order to identify potential acquisition targets, which will be accretive to its earnings per share. The company's acquisition strategy focuses on newbuilding or secondhand Capesize dry bulk vessels, although it may acquire vessels in other sectors which it offers attractive investment opportunities.

Management of Fleet

The company manages its vessel's operations, insurances and bunkering and has the general supervision of its third-party technical and commercial managers.

Seanergy Shipmanagement, the company's wholly owned subsidiary, provides certain technical management services to the majority of the vessels of its fleet, namely the MVs Dukeship, Fellowship, Friendship, Knightship, Lordship, Worldship, Hellasship, Partnership, Flagship, Patriotship, Honorship, Premiership, Geniuship, Squireship and Paroship.

V.Ships Greece, an independent third party, provides technical management to two of its vessels, the MVs Championship and Friendship, that includes general administrative and support services, such as crewing and other technical management, accounting related to vessels and provisions.

Seanergy Management has entered into a commercial management agreement with Fidelity, an independent third party, pursuant to which Fidelity provides commercial management services for all of the vessels in the company's fleet. Fidelity serves as a commercial broker for Capesize vessels exclusively to the company. Under the commercial management agreement, the company has agreed to reimburse Fidelity for all reasonable running and/or out-of-pocket expenses, including but not limited to, telephone, fax, stationary and printing expenses, as well as any pre-approved travelling expenses. V.Ships, Global Seaways and Anglo-Eastern provide crew management services to six, six and two vessels of the company's fleet, respectively.

Customers

The company's customers include or have included national, regional and international companies.

Environmental and Other Regulations

A variety of government and private entities subject the company's vessels to both scheduled and unscheduled inspections. These entities include the local port authorities (applicable national authorities, such as the United States Coast Guard (USCG) harbor master or equivalent), classification societies, flag state administrations (countries of registry), terminal operators, and charterers.

In 1997, the International Maritime Organization (IMO) adopted Annex VI to MARPOL (the International Convention for the Prevention of Pollution from Ships of 1973 as modified by the Protocol of 1978, as amended) to address air pollution from vessels. Effective May 2005, Annex VI sets limits on sulfur oxide and nitrogen oxide emissions from all commercial vessel exhausts and prohibits 'deliberate emissions' of ozone depleting substances (such as halons and chlorofluorocarbons), emissions of volatile compounds from cargo tanks, and the shipboard incineration of specific substances. Annex VI also includes a global cap on the sulfur content of fuel oil and allows for special areas to be established with more stringent controls on sulfur emissions, as explained below. Emissions of 'volatile organic compounds' from certain vessels, and the shipboard incineration (from incinerators installed after January 1, 2000) of certain substances (such as polychlorinated biphenyls, or PCBs) are also prohibited. All the company's vessels are compliant in all material respects with these regulations.

The company's vessels are in substantial compliance with Safety of Life at Sea (SOLAS) and LLMC (the Convention of Limitation of Liability for Maritime Claims) standards.

Under Chapter IX of the International Convention for the Safety of Life at Sea of 1974, or the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention, or the ISM Code, the company's operations are also subject to environmental standards and requirements.

The company relies upon the safety management system that the company and its technical management team have developed for compliance with the ISM Code.

The company has obtained applicable documents of compliance for its offices and safety management certificates for all of its vessels for which the certificates are required by the IMO.

The company has obtained Anti-fouling System Certificates for all of its vessels that are subject to the International Convention on the Control of Harmful Anti-fouling Systems on Ships (Anti-fouling Convention).

The U.S. Environmental Protection Agency (EPA) and the USCG have also enacted rules relating to ballast water discharge, compliance with which requires the installation of equipment on the company's vessels to treat ballast water before it is discharged or the implementation of other port facility disposal arrangements or procedures at potentially substantial costs, and/or otherwise restrict the company's vessels from entering the U.S. Waters.

All the company's vessels are in substantial compliance with and are certified to meet the Maritime Labor Convention 2006. All of the company's vessels are certified as being 'in class' by all the applicable Classification Societies (e.g., American Bureau of Shipping, DNV, Lloyd's Register of Shipping, Bureau Veritas).

History

The company was incorporated under the laws of the Republic of the Marshall Islands, pursuant to the Marshall Islands Business Corporations Act, in 2008. It was formerly known as Seanergy Maritime Corp. and changed its name to Seanergy Maritime Holdings Corp. in 2009.