Castor Maritime Inc. Announces New Vessel Acquisition and the Delivery of the M/T Wonder Polaris

Rhea-AI Summary

Castor Maritime (NASDAQ: CTRM) has announced an agreement to purchase a 2011 Japanese-built Kamsarmax dry bulk carrier for $16.85 million, with delivery expected between Q2 and Q3 2021. This acquisition marks the company's eighth vessel purchase in 2021, expanding its fleet to 14 vessels, including 1 Capesize and 2 Aframax tankers. Additionally, Castor successfully delivered the M/T Wonder Polaris, its first Aframax tanker, currently chartered at $15,000 per day. The company financed this acquisition entirely with cash.

Positive

• Acquisition of Kamsarmax dry bulk carrier valued at $16.85 million, enhancing fleet capacity.
• Successful delivery of M/T Wonder Polaris, marking entry into the tanker market with steady income from a time charter.

Negative

• None.

LIMASSOL, Cyprus, March 12, 2021 (GLOBE NEWSWIRE) -- Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a diversified global shipping company, announces that it entered, through a separate wholly-owned subsidiary, into an agreement to purchase a 2011 Japanese-built Kamsarmax dry bulk carrier from an unaffiliated third-party for a purchase price of $16.85 million.

The acquisition is expected to be consummated by taking delivery of the vessel sometime between the second and third quarter of this year and is subject to the satisfaction of certain customary closing conditions.

The Company also announces that, on March 11, 2021, it took delivery of the M/T Wonder Polaris, the 2005 Korean-built Aframax LR2 tanker it had agreed to acquire as previously announced on February 11, 2021. The M/T Wonder Polaris is currently employed under a time charter contract with minimum duration of about one year at a minimum gross daily hire of $15,000. The M/T Wonder Polaris acquisition was financed in its entirety with cash on hand.

Petros Panagiotidis, Chief Executive Officer of Castor, commented:

“We are pleased to announce our eighth vessel acquisition in 2021 with the addition of another Kamsarmax dry bulk vessel, our fifth, to Castor’s fleet. Upon completion of all our recently announced acquisitions, our fleet will consist of fourteen vessels.

In addition, we are also happy to announce the successful delivery of our first of two Aframax LR2 tankers, marking our foray into the tanker market.”

About Castor Maritime Inc.

Castor Maritime Inc. is an international provider of shipping transportation services through its ownership of oceangoing cargo vessels.

On a fully delivered basis, Castor will have a fleet of 14 vessels, with an aggregate capacity of 1.3 million dwt, consisting of 1 Capesize, 5 Kamsarmax and 6 Panamax dry bulk vessels and 2 Aframax tankers. Where we refer to information on a “fully delivered basis”, we are referring to such information after giving effect to the successful consummation of our recent vessel acquisitions.

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

Information on our website does not constitute a part of this press release.

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. We desire to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are 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 our view, could cause actual results to differ materially from those discussed in the forward-looking statements include general dry bulk and tanker shipping market conditions, including fluctuations in charter hire 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 and tanker 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, 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 we disclaim 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 recently?

Castor Maritime acquired a 2011 Japanese-built Kamsarmax dry bulk carrier for $16.85 million.

When is the delivery date for the new Kamsarmax vessel?

The delivery of the Kamsarmax vessel is expected between the second and third quarter of 2021.

What is the current status of the M/T Wonder Polaris?

The M/T Wonder Polaris has been delivered and is under a time charter contract at a minimum gross daily hire of $15,000.

How many vessels will Castor Maritime have after its recent acquisitions?

After its recent acquisitions, Castor Maritime will have a total fleet of 14 vessels.

How was the acquisition of M/T Wonder Polaris financed?

The acquisition of M/T Wonder Polaris was financed entirely with cash on hand.