Danaos Corporation Announces Reverse Stock Split to be Effective May 2, 2019

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Apr 22, 2019, 07:30 ET

ATHENS, Greece, April 22, 2019 /PRNewswire/ -- Danaos Corporation (the "Company" or "Danaos") (NYSE: DAC) today announced that its board of directors has determined to effect a one-for-fourteen (1-for-14) reverse stock split of the Company's common stock, par value $0.01 per share. The Company's stockholders approved a reverse stock split at the Company's special meeting of stockholders held on March 5, 2019.

The reverse stock split will take effect, and the Company's common stock will begin trading on a split-adjusted basis on the New York Stock Exchange ("NYSE"), as of the opening of trading on or about May 2, 2019. The CUSIP number of Y1968P 121 will be assigned to the Company's common stock when the reverse stock split becomes effective.

When the reverse stock split becomes effective, every fourteen (14) of the Company's issued shares of common stock will be combined into one issued share of common stock, without any change to the par value per share. This will reduce the number of outstanding shares of common stock from approximately 213.4 million shares to approximately 15.2 million shares.

No fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise hold a fraction of a share of common stock of the Company will receive a cash payment in lieu thereof at a price equal to that fraction of a share to which the stockholder would otherwise be entitled, multiplied by the closing price of the Company's common stock on the NYSE on May 1, 2019.

Stockholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the consequence of the reverse stock split reflected in their accounts on or after May 2, 2019. Such beneficial holders may contact their bank, broker, or nominee for more information.

On December 31, 2018, the Company received notice from the NYSE that it was no longer in compliance with the NYSE's continued listing standards because the average closing share price of the Company's common stock over a consecutive 30 trading-day period had fallen below the requirement to be at least $1.00 per share. The purpose of the reverse stock split is to increase the market price of the Company's common stock. The Company believes that the reverse stock split will increase the market price for its common stock and cure this deficiency.

Additional information about the reverse stock split can be found in the Company's proxy statement mailed to stockholders on or about February 1, 2019, a copy of which was furnished to the U.S. Securities and Exchange Commission (the "Commission") on February 1, 2019 on the Company's Report on Form 6-K and is available on the Commission's website at www.sec.gov.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements with respect to the Company's ability to regain compliance with the NYSE's continued listing standards and remain listed on the NYSE or other major stock exchange and other statements that are forward looking. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the effects of refinancing transactions, Danaos' ability to achieve the expected benefits of the refinancing and comply with the terms of its new credit facilities and other agreements entered into in connection with the refinancing, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry-docking, changes in Danaos Corporation's operating expenses, including bunker prices, dry-docking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by Danaos Corporation with the U.S. Securities and Exchange Commission.

About Danaos Corporation

Danaos Corporation's fleet of 59 containerships aggregating 352,600 TEUs, including four vessels owned by Gemini Shipholdings Corporation, a joint venture, ranks Danaos among the largest containership charter owners in the world based on total TEU capacity.

SOURCE Danaos Corporation