Paragon Shipping Inc. announced that, following the completion of its previously announced public offering of 6,000,000 common shares on September 27, 2013, it has completed the acquisition of two Ultramax newbuilding drybulk carriers from an affiliated entity. The Ultramax newbuildings have a carrying capacity of 63,500 dwt each, and are currently under construction at Yangzhou Dayang Shipbuilding Co. Ltd., member of Sinopacific Shipbuilding Group, with scheduled delivery on May 31, 2014 and July 31, 2014, respectively.

The total consideration for these two newbuildings was $53.0 million, and on October 3, 2013, the Company paid a first installment of $8.1 million per vessel. The balance of the contract price, or $18.4 million per vessel, will be payable upon the delivery of each vessel.