Castor Maritime Inc. Announces Delivery of the M/V Magic Nova and New Charter Agreement

Rhea-AI Summary

Castor Maritime Inc. (NASDAQ: CTRM) announced the acquisition of the 2010-built Panamax dry bulk vessel, M/V Magic Nova, which was delivered on October 15, 2020. The acquisition was funded entirely with cash from equity offerings in June and July 2020. The vessel will commence a time charter on October 17, 2020, generating approximately $1.9 million in gross revenue for a minimum period and up to $2.8 million if extended. The fleet operates at an average gross charter hire rate of $10,800.

Positive

• Acquisition of M/V Magic Nova enhances fleet capacity and potential revenue.
• Time charter expected to generate $1.9 million in minimum gross revenues.
• Potential total revenue of $2.8 million if charter extended.

Negative

• None.

LIMASSOL, Cyprus, Oct. 20, 2020 (GLOBE NEWSWIRE) -- Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, announces today that on October 15, 2020 it took delivery of the 2010 Japan-built Panamax dry bulk vessel it had previously agreed to acquire as announced on October 1, 2020, the M/V Magic Nova (the “Magic Nova Acquisition”). The Magic Nova Acquisition was financed in whole with cash on hand that the Company raised in the two equity offerings conducted in June and July of this year.

On October 17, 2020, the M/V Magic Nova commenced employment under a time charter agreement with an expected term of between 6 to 9 months that is anticipated to provide the Company with approximately $1.9 million of gross incremental revenues for the minimum scheduled period of the time charter and approximately $2.8 million should employment extend to its maximum period.

Following this commercial development, the Company’s fleet employment profile as of today is as follows:

Vessel Name	DWT	Year Built	Country of Construction	Daily Gross Charter Rate		Estimated Redelivery Date (Earliest/ Latest)
Magic P	76,453	2004	Japan	$9,000		December 2020	March 2021
Magic Sun	75,311	2001	Korea	$12,500		November 2020	December 2020
Magic Moon	76,602	2005	Japan	$11,500		October 2020	November 2020
Magic Rainbow	73,593	2007	China	$10,300		November 2020	January 2021
Magic Horizon	76,619	2010	Japan	$11,000		August 2021	December 2021
Magic Nova	78,833	2010	Japan	$10,400		April 2021	July 2021

As of the date of this press release, the Company’s fleet operates at an approximate average gross charter hire rate of $10,800.

About Castor Maritime Inc.

Castor Maritime Inc. is an international provider of shipping transportation services through its ownership of dry bulk vessels. The Company’s vessels are employed primarily on medium-term charters and transport a range of dry bulk cargoes, including such commodities as coal, grain and other materials along worldwide shipping routes.

The Company's fleet currently consists of six Panamax dry bulk vessels.

For more information please visit the company’s website at www.castormaritime.com

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements 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 Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe 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, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward‐looking statements include general dry bulk shipping market conditions, including fluctuations in charterhire rates and vessel values, the strength of world economies the stability of Europe and the Euro, fluctuations in interest rates and foreign exchange rates, changes in demand in the dry bulk shipping industry, including the market for our vessels, changes in our operating expenses, including bunker prices, dry docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, the length and severity of the COVID-19 outbreak, the impact of public health threats and outbreaks of other highly communicable diseases, the impact of the expected discontinuance of LIBOR after 2021 on interest rates of our debt that reference LIBOR, the availability of financing and refinancing and grow our business, vessel breakdowns and instances of off‐hire, risks associated with vessel construction, potential exposure or loss from investment in derivative instruments, potential conflicts of interest involving our Chief Executive Officer, his family and other members of our senior management, and our ability to complete acquisition transactions as planned. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward‐looking statements as a result of developments occurring after the date of this communication.

CONTACT DETAILS
For further information please contact:

Petros Panagiotidis
Castor Maritime Inc.
Email: ir@castormaritime.com

Media Contact:
Kevin Karlis
Capital Link
Email: castormaritime@capitallink.com

 

FAQ

What vessel did Castor Maritime acquire on October 15, 2020?

Castor Maritime acquired the 2010-built Panamax dry bulk vessel, M/V Magic Nova.

How was the acquisition of <em>M/V Magic Nova</em> financed?

The acquisition was financed entirely with cash on hand raised from two equity offerings conducted in June and July 2020.

What revenue is expected from the time charter for <em>M/V Magic Nova</em>?

The time charter is expected to provide approximately $1.9 million in gross incremental revenues for the minimum scheduled period.

What is the maximum revenue potential for <em>M/V Magic Nova</em> under its charter?

If the time charter is extended to its maximum period, it could generate approximately $2.8 million.

What is the average gross charter hire rate for Castor Maritime's fleet?

As of the press release, the average gross charter hire rate for Castor Maritime's fleet is $10,800.