Globus Maritime Limited (NASDAQ: GLBS) is an integrated dry bulk shipping company that provides marine transportation services worldwide and presently owns, operates and manages a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes internationally.
Globus Maritime Limited announced that they will release financial results for the three-month period ended March 31, 2018, after the market closes in New York on June 6th, 2018.
GLBS received written notification from The Nasdaq Stock Market dated April 30, 2018, indicating that because the closing bid price of the Company’s common stock for the last 30 consecutive business days was below $1.00 per share, the Company no longer meets the minimum bid price continued listing requirement for the Nasdaq Capital Market. Pursuant to Nasdaq Listing Rules, the applicable grace period to regain compliance is 180 days, or until October 29, 2018.
Net cash provided by operating activities for the year ended December 31, 2017 was $0.6 million compared to net cash used in operating activities of $3.6 million during the year 2016.
On October 19, 2017, GLBS entered into a Share and Warrant Purchase Agreement pursuant to which they sold, for $2.5 million, an aggregate of 2.5 million of common shares and a warrant to purchase 12.5 million of common shares at a price of $1.60 per share (subject to adjustment) to an investor in a private placement.
On February 5, 2018, GLBS announced that investors holding warrants originally issued pursuant to the Company’s February 2017 private placement have elected to exercise their right to purchase 375,000 of the Company’s common shares at a price of $1.60 per share.
About the company:
Globus is a drybulk shipping company, providing marine transportation services on a worldwide basis. The Company was incorporated on July 26, 2006 in Jersey and has executive offices in Athens, Greece. On November 24, 2010, Globus Maritime Limited redomiciled into the Republic of the Marshall Islands.
They currently own five modern drybulk carriers, consisting of one Panamax, and four Supramax vessels with a weighted average age of approximately 9.8 years as of December 31, 2017 and a total carrying capacity of 300,571 DWT. They are a vertically integrated shipping company that owns, operates and manages a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes worldwide. Their current fleet consists of one Kamsarmax, one Panamax, and four Supramax vessels.
Products:
GLBS own vessels through separate wholly owned subsidiaries. Details of all the active subsidiaries appear below.
Market
The Dry Bulk Shipping Industry
The world dry bulk fleet is generally divided into six major categories, based on a vessel’s cargo carrying capacity. These categories consist of: Handysize, Handymax/Supramax, Panamax, Kamsarmax, Capesize and Very Large Ore Carrier.
Dry bulk vessels are one of the most versatile elements of the global shipping fleet in terms of employment alternatives. They seldom operate on round trip voyages with high ballasting times. Rather, they often participate in triangular or multi-leg voyages.
Latest Quarter Financial position FYE 2017
Revenue $14,423,000
Operating expense $18,438,000
Financing expense $2,360,000
Net loss $(6,475,000)
Globus Maritime Limited is a small-cap stock with a market capitalization of US$24.65M.
Net cash provided by operating activities for the year ended December 31, 2017 was $0.6 million compared to net cash used in operating activities of $3.6 million during the year 2016.
- Debt: GLBS’s debt levels have fallen from US$65.57M to US$41.54M over the last 12 months, which comprises of short- and long-term debt. With this debt repayment, GLBS’s cash and short-term investments stands at US$2.76M, ready to deploy into the business.
- Cash Position: The fair value of cash and cash equivalents as at December 31, 2017 and 2016, was $2,756 and $163, respectively.
- Capital deficit: They had a working capital deficit (being our total consolidated current liabilities exceeding our total consolidated current assets) of $43.3 million as of December 31, 2017. With current liabilities at US$47.55M, it appears that the company has not maintained a sufficient level of current assets to meet its obligations, with the current ratio last standing at 0.089x.
Stock Influences and Risk Factors:
- Currently all of their vessels are chartered on short-term time charters and on the spot market, and are exposed therefore to changes in spot market and short-term charter rates for dry bulk vessels;
- Due to the credit crisis in Europe, in particular in Greece, Cyprus, Italy, Ireland, Portugal and Spain, concerns persist regarding the debt burden of certain Eurozone countries and their ability to meet future financial obligations and the overall stability of the Euro. An extended period of adverse development in the outlook for European countries could reduce the overall demand for dry bulk cargoes;
- There are substantial doubts about their ability to continue as a going concern and if they are unable to continue their business, GLBS shares may have little or no value;
- GLBS stock price has been volatile and no assurance can be made that it will not substantially depreciate. The closing price of GLBS shares within the past 18 months has ranged from a peak of $10.77 on January 23, 2017 to a low of $0.74 on May 31, 2018.
Stock Chart:
Comments:
On Friday, June 1, 2018, GLBS shares were at $.74 on traded volume of 62K shares. The current RSI (14) is 38.12
At $.74, GLBS shares are trading below their 50 DMA and 200 DMA of $.78 and $.99 respectively.
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