Belships

Share Issue/Capital Change • Apr 8, 2021

Belships fleet expansion and share issue

Belships fleet expansion and share issue

Belships ASA (OSE: BELCO) has entered into an agreement for the acquisition of

an Ultramax bulk carrier.

A secondhand Ultramax bulk carrier built in 2017 by a Chinese shipyard will be

acquired in a cash and shares transaction. Delivery of the vessel is expected

during the second quarter of 2021 whilst an existing time charter party at a

marginally cash-positive rate will follow the vessel and is expected to run

until the end of October 2021.

The agreed purchase price is USD 21.75 million, of which 80% will be paid in

cash. The remaining consideration will be settled through an issue of 4,988,000

new Belships shares to the seller of the vessel. The agreed share price in the

transaction is NOK 7.50 per share.

The vessel is intended to be financed with bank financing for approximately 60

per cent of the purchase price. If so, the vessel acquisition is expected to

influence the Group's cash holdings by about USD 4.35 million. The estimated

cash breakeven for the vessel upon delivery is about USD 9,500 per day including

operational expenses.

The agreement is conditional upon certain steps to be completed by the parties

involved. Conclusion is expected within April 2021.

"This is another milestone for Belships. We expand our fleet whilst maintaining

capital discipline in our quest to grow the company further. The goal remains

focused on creating value for our shareholders and increase the attractiveness

of trading our shares," said Belships CEO, Lars Christian Skarsgård.

This acquisition and share issue will expand Belships' shareholder base and

continue to improve share liquidity and free float.

Following completion of all announced transactions, the Belships fleet will

count 25 Supramax/Ultramax bulk carriers, with an average age of 5

years, including 4 newbuildings to be delivered within 2021.

Belships has a uniform and modern fleet of bulk carriers well positioned to

capitalise on a recovery for vessel values. Our strategy is to develop Belships

as an owner and operator of geared bulk carriers, through quality of operations

and accretive growth opportunities.

For further information, please contact Lars Christian Skarsgård, Belships CEO,

phone +47 977 68 061 or e-mail LCS@belships.no (mailto:LCS@belships.no)

This stock exchange announcement was published by Edwin Johansen, Accounting

Manager in Belships ASA on 8 April 2021 at 07:00 CET.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.