Paragon Shipping Inc. received a cancellation notice from Jiangsu Yangzijiang Shipbuilding Co., in relation to the three Kamsarmax newbuilding drybulk carriers (Hull numbers YZJ2013-1144, YZJ2013-1145 and YZJ2013-1142). The current market conditions, coupled with the financial condition of the company, did not allow the company to take delivery of the Kamsarmax newbuilding drybulk carrier with Hull number YZJ2013-1144 by September 30, 2016, the latest date to complete the vessel acquisition. Following the failure to take delivery of the Kamsarmax newbuilding drybulk carrier with Hull number YZJ2013-1144, Yangzijiang cancelled the contracts for all three Kamsarmax newbuilding drybulk carriers, pursuant to the terms of the ship-building contracts. Currently, the company is contemplating its options.