Nordic American Offshore (NAO) has closed the follow-on offering of 40,000,000 common shares at a public offering price of $1.25 per share resulting in aggregate net proceeds of approximately $47.7 million.
The proceeds could be slightly in excess of $50 million, provided the over-allotment option is wholly or partly exercised (maximum about $7 million). Following the offering, the Company has 60,686,847 common shares outstanding as against 20,686,847 shares before the offering.
NAO Executive Chairman, Herbjorn Hansson said
: ""Going forward, this successful offering has as an objective to continue the growth process of NAO of top modern PSVs, servicing the oil industry, above all in the UK and Norwegian sector of the North Sea. As NAO increases its fleet, we may expand into other geographical areas internationally - the potential is substantial."
Hansson added: "The undersigned and Nordic American Tankers (NAT), plus senior executives of the Nordic American group have subscribed shares in this offering. Our objective is that NAO shall become the same success as the NYSE listed Nordic American Tankers, servicing customers and shareholders. My belief in NAO is evidenced by the fact that my family and I have invested $2 million in the offering. Furthermore, NAT, our largest shareholder invested $10 million. We are very pleased with this offering transaction."
Morgan Stanley & Co. LLC, DNB Markets, Inc. and Skandinaviska Enskilda Banken AB (publ) acted as the joint bookrunning managers of the offering.
The Company is an international company formed for the purpose of acquiring, owning and operating platform supply vessels, or PSVs, and currently owns ten high quality PSVs constructed at shipyards in Norway during the period from 2012 to 2016.