Castor Maritime Inc. Announces the En Bloc Acquisition of a Tanker Fleet Consisting of 5 Vessels
Castor Maritime (NASDAQ: CTRM) announces the acquisition of five Korean-built tankers for a total of $49.25 million. This acquisition includes two MR1 tankers from 2006 and three Aframax/LR2 tankers built in 2004 and 2002. The deal is anticipated to close in the second quarter of 2021, pending customary closing conditions. Following this transaction, Castor's fleet will expand to 23 vessels, comprising 15 bulkers and 8 tankers, enhancing its market presence and diversification strategy.
- Acquisition of five tankers enhances fleet diversification.
- Total fleet growth to 23 vessels strengthens market position.
- Strategic entry into tanker market with accelerated growth.
- None.
LIMASSOL, Cyprus, April 30, 2021 (GLOBE NEWSWIRE) -- Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a diversified global shipping company, announces that it entered, through five separate wholly-owned subsidiaries, into agreements to acquire two 2006 Korean-built MR1 tankers, two 2004 Korean-built Aframax/LR2 tankers and one 2002 Korean-built Aframax/LR2 tanker. The five tankers are acquired from an unaffiliated third-party for an aggregate purchase price of
The acquisitions are expected to be consummated by taking delivery of the vessels in the second quarter of this year and are subject to the satisfaction of certain customary closing conditions.
Petros Panagiotidis, Chief Executive Officer of Castor, commented:
“We are excited to announce our largest purchase transaction thus far, with the en bloc acquisition of five tankers. Since our entry into the tanker market earlier this year, we have managed to swiftly grow our tanker fleet to eight vessels.
Upon completion of all our recently announced acquisitions, our fleet will consist of twenty-three vessels, establishing our Company with a diverse fleet of fifteen bulkers and eight tankers. This diversification allows us to pursue attractive opportunities across different shipping sectors.”
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 own a fleet of 23 vessels, with an aggregate capacity of 2.0 million dwt, consisting of 1 Capesize, 6 Kamsarmax and 8 Panamax dry bulk vessels, as well as 1 Aframax, 5 Aframax/LR2 and 2 MR1 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 is the total purchase price for the tankers acquired by Castor Maritime?
When does Castor Maritime expect to close the tanker acquisitions?
How many vessels will Castor Maritime own after the new acquisitions?
What types of tankers is Castor Maritime acquiring?
How many tankers does Castor Maritime have in its fleet after these acquisitions?
