Castor Maritime Inc. Announces Vessel Acquisition and New Charter Agreements

Rhea-AI Summary

Castor Maritime Inc. (NASDAQ: CTRM) has agreed to acquire a 2008-built Panamax dry bulk carrier for $18.75 million. The transaction is set to close in Q4 2021, contingent on customary conditions. Following recent acquisitions, Castor’s dry bulk fleet will expand to 19 vessels. Additionally, two Kamsarmax vessels have been secured on time charter contracts, each generating a gross daily rate of $35,000 for approximately 100 days. CEO Petros Panagiotidis highlighted strong demand for dry bulk transportation, which supports the company’s cash flow and growth strategy.

Positive

• Acquisition of Panamax vessel enhances fleet size to 19 vessels.
• Expected cash financing from operations supports growth plans.
• New charter contracts increase revenue potential with stable demand.

Negative

• None.

LIMASSOL, Cyprus, Aug. 26, 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 acquire a 2008 Japanese-built Panamax dry bulk carrier from an unaffiliated third-party for a purchase price of $18.75 million. The acquisition is expected to be concluded by taking delivery of the vessel in the fourth quarter of this year and is subject to the satisfaction of certain customary closing conditions.

The Company also announces that:

The M/V Magic Perseus, a 2013 built Kamsarmax dry bulk carrier, following its acquisition by Castor, has been fixed on a time charter contract that commenced on August 20, 2021, at a daily gross charter rate of $35,000 and with a term of about 100 days.

The M/V Magic Thunder, a 2011 built Kamsarmax dry bulk carrier, following completion of its previous employment contract, has been fixed on a time charter contract that commenced on August 3, 2021, at a daily gross charter rate of $35,000 and with a term of about 100 days.

Petros Panagiotidis, Chief Executive Officer of Castor, commented:

“We are happy to announce the acquisition of our 11^th Panamax vessel, increasing our dry bulk fleet to 19 vessels. The vessel acquisition is expected to be financed with cash on hand and cash flows generated from operations.

Furthermore, we are pleased to announce two new employment fixtures at daily gross rates of $35,000. Demand for dry bulk transportation services remains strong, allowing us to generate significant free cash flows and fund our growth plans.”

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 27 vessels, with an aggregate capacity of 2.3 million dwt, consisting of 1 Capesize, 7 Kamsarmax and 11 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 purpose of Castor Maritime's acquisition of the Panamax vessel?

The acquisition aims to expand Castor Maritime's dry bulk fleet and enhance operational capacity.

How much does Castor Maritime's new Panamax vessel cost?

The Panamax vessel is being acquired for $18.75 million.

When is the delivery of the new vessel expected?

The delivery of the vessel is expected in the fourth quarter of 2021.

What is the daily charter rate for the new contracts secured by Castor Maritime?

The new contracts are fixed at a daily gross charter rate of $35,000 for approximately 100 days each.

What impact does the acquisition have on Castor Maritime's fleet size?

The acquisition will increase Castor Maritime's dry bulk fleet to a total of 19 vessels.