Top Ships enters LOI to acquire real estate assets in Dubai

Top Ships (TOPS) announced that it has entered into a letter of intent for the potential acquisition of certain residential real estate assets in Dubai from a company affiliated with Evangelos Pistiolis, the company’s president and CEO. Under the letter of intent, Top Ships has been granted an exclusive right and an option to acquire all or a portion of a portfolio of assets with an estimated aggregate market value in excess of $200M. The purchase price on exercise of the option with respect to any of the properties will be at a 10% discount to fair market value as determined by two independent appraisals. Prior to December 31, Top Ships will make an advance cash payment of $23.5M to be credited against the acquisition price or refunded to the extent the company does not elect to exercise the purchase option. The option period expires 90 days following this advance payment. The entry into the letter of intent was approved by a special committee composed of independent members of the company’s board of directors. The exercise of the purchase option remains subject to the approval of the special committee. During the 90-day option period the special committee will conduct a due diligence process and evaluation of the potential transaction taking into account market conditions and other factors, and there can be no assurance that the purchase option will be exercised or that the acquisition of the assets subject to the purchase option or any similar transaction involving real estate assets will be consummated.