Castor Maritime Inc. Announces Vessel Acquisition

Rhea-AI Summary

Castor Maritime (NASDAQ: CTRM) announced an agreement to acquire a 2015 Kamsarmax dry bulk carrier for $23.5 million. The vessel comes with a time charter contract, securing a daily gross rate at 114% of the Baltic Panamax Index, estimated to last 17-21 months. This acquisition marks Castor's eleventh vessel purchase in 2021 and will expand their fleet to 17 vessels with a total capacity of 1.5 million dwt. The transaction is expected to close in Q2 2021, pending customary conditions.

Positive

• Acquisition of a Kamsarmax dry bulk carrier enhances fleet capacity.
• Time charter contract ensures stable revenue stream at 114% of the Baltic Panamax Index.

Negative

• None.

LIMASSOL, Cyprus, April 19, 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 2015 Chinese-built Kamsarmax dry bulk carrier from an unaffiliated third-party for a purchase price of $23.5 million.

The vessel will be delivered to the Company with a time charter contract attached with a reputable charterer, at a daily gross charter rate equal to 114% of the Baltic Panamax Index, and with an estimated remaining term of about 17 to 21 months.

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

Petros Panagiotidis, Chief Executive Officer of Castor, commented:

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

With significant capital on hand, we continue to look for further opportunities to grow our fleet with the addition of high-quality tonnage.”

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 17 vessels, with an aggregate capacity of 1.5 million dwt, consisting of 1 Capesize, 6 Kamsarmax, and 7 Panamax dry bulk vessels, as well as 1 Aframax and 2 Aframax/LR2 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 acquisition cost of the Kamsarmax dry bulk carrier by Castor Maritime?

Castor Maritime is acquiring the Kamsarmax dry bulk carrier for $23.5 million.

How long is the charter contract for the newly acquired vessel?

The charter contract for the acquired vessel is estimated to last between 17 to 21 months.

What is the significance of the Baltic Panamax Index for Castor Maritime's acquisition?

The vessel's charter contract is tied to the Baltic Panamax Index, ensuring a daily gross rate equal to 114% of the index.

How many vessels will Castor Maritime own after the acquisition?

After this acquisition, Castor Maritime's fleet will consist of a total of 17 vessels.

When is the expected delivery date for the newly acquired vessel?

The acquisition is expected to be completed and the vessel delivered within the second quarter of 2021.