Ardmore Shipping Announces Definitive Agreements on Strategic Investment in Element 1 Corp., Establishment of e1 Marine Joint Venture, and Preferred Stock Financing

Rhea-AI Summary

Ardmore Shipping Corporation (NYSE: ASC) has finalized strategic agreements for a significant investment in Element 1 Corp.'s methanol-to-hydrogen technology, establishing the e1 Marine joint venture and acquiring a 10% equity stake in Element 1 Corp. Additionally, Maritime Partners, LLC will invest between $25 million and $40 million in Ardmore's newly created Series A 8.5% Cumulative Redeemable Perpetual Preferred Shares. Stuart Crawford has been appointed as Managing Director of e1 Marine, bringing over 35 years of experience in the marine industry.

Positive

• Strategic investment in Element 1 Corp. enhances Ardmore's position in renewable energy technology.
• Formation of e1 Marine joint venture could lead to new growth opportunities.
• Appointment of experienced industry leader Stuart Crawford as Managing Director may bolster operational capabilities.

Negative

• None.

HAMILTON, Bermuda, June 4, 2021 /PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore" or the "Company") today announced that it has entered into definitive agreements for the previously announced strategic investment into Element 1 Corp.'s unique methanol-to-hydrogen technology, including the establishment of the e1 Marine joint venture and Ardmore's purchase of an approximately 10% equity stake in Element 1 Corp.

In a related transaction, Ardmore also entered into a definitive agreement for Maritime Partners, LLC to invest at least $25 million and up to $40 million in the Company's newly created Series A 8.5% Cumulative Redeemable Perpetual Preferred Shares. 

Ardmore also announced that e1 Marine has hired Mr. Stuart Crawford as Managing Director. Mr. Crawford has more than 35 years of technical, operational, and commercial management executive experience in the Marine industry, having previously held positions at Teekay, Seaspan, Pioneer, and Clean Ocean LNG.

About Ardmore Shipping Corporation:

Ardmore owns and operates a fleet of MR product and chemical tankers ranging from 25,000 to 50,000 deadweight tonnes. Ardmore provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of mid-size tankers.

Ardmore's core strategy is to continue to develop a modern, high-quality fleet of product and chemical tankers, build key long-term commercial relationships and maintain its cost advantage in assets, operations and overhead, while creating synergies and economies of scale as the company grows. Ardmore provides its services to customers through voyage charters, commercial pools, and time charters, and enjoys close working relationships with key commercial and technical management partners.

In February 2021, Ardmore announced its Energy Transition Plan ("ETP") focused on three key areas: transition technologies, transition projects, and sustainable (non-fossil fuel) cargos. The ETP is an extension of Ardmore's existing strategy, building on its core strengths of tanker chartering, shipping operations, technical and operational fuel efficiency improvements, technical management, construction supervision, project management, investment analysis, and ship finance. Ardmore has established Ardmore Ventures as Ardmore's holding company for existing and future potential investments related to the ETP.

Investor Relations Enquiries:

Mr. Leon Berman
The IGB Group
45 Broadway, Suite 1150
New York, NY 10006
Tel: 212-477-8438
Fax: 212-477-8636
Email: lberman@igbir.com

Or

Mr. Bryan Degnan
The IGB Group
Tel: 646-673-9701
Email: bdegnan@igbir.com

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SOURCE Ardmore Shipping Corporation

FAQ

What is the recent investment by Ardmore Shipping Corporation in Element 1 Corp?

Ardmore Shipping Corporation has made a strategic investment in Element 1 Corp., acquiring a 10% equity stake and establishing the e1 Marine joint venture.

How much is Maritime Partners investing in Ardmore Shipping Corporation?

Maritime Partners is investing between $25 million and $40 million in Ardmore's newly created Series A 8.5% Cumulative Redeemable Perpetual Preferred Shares.

Who has been appointed as the Managing Director of e1 Marine?

Stuart Crawford has been appointed as the Managing Director of e1 Marine.

What technology is Ardmore Shipping focusing on with its investment in Element 1 Corp?

Ardmore Shipping is focusing on methanol-to-hydrogen technology with its investment in Element 1 Corp.

When was the announcement made regarding Ardmore Shipping's investment and joint venture?

The announcement was made on June 4, 2021.