Pyxis Tankers Announces Sale of Product Tanker

Rhea-AI Summary

Pyxis Tankers Inc. agrees to sell vessel Pyxis Epsilon for $40.75 million in cash to a US buyer, expecting to receive cash proceeds of $26.4 million after repayment of debt and transaction costs. Expects to recognize a non-cash gain of $16.8 million or $1.57 per share. Sale increases cash position and financial flexibility for potential vessel purchases and strategic initiatives.

Positive

• Sale of vessel at attractive price
• Expected cash proceeds of $26.4 million
• Non-cash gain of $16.8 million

Negative

• None.

Maroussi, Greece, September 22, 2023 – Pyxis Tankers Inc. (NASDAQ Cap Mkts: PXS), (the “Company”), an international shipping company, today announced that it has agreed to sell the vessel Pyxis Epsilon, a 2015 built 50,295 dwt. product tanker, for a sale price of $40.75 million in cash to an unaffiliated buyer located in the United States. Completion of the vessel sale, which is subject to customary closing conditions, is expected to occur during the fourth quarter of 2023. After the repayment of the outstanding indebtedness secured by the vessel and the payment of various transaction costs, the Company expects to receive cash proceeds of approximately $26.4 million, which would be used for general corporate purposes. Assuming completion of the vessel sale during the fourth quarter of 2023, the Company expects to recognize a non-cash gain from asset disposition of approximately $16.8 million or $1.57 per current outstanding common share.

Valentios Valentis, our Chairman and CEO commented:

“The sale of our eight year old tanker at what we believe is a very attractive price underscores our focus on optimizing fleet value and providing further financial strength and capital resources. Our current total cash balance of $30.7  million is expected to subsequently increase upon receipt of the net cash sale proceeds of over $26 million. On completion of this latest asset disposition, our substantial cash position and low leverage will further increase our operating and financial flexibility to potentially pursue additional vessel purchases as well as other corporate and strategic initiatives that should enhance shareholder value.”

About Pyxis Tankers Inc.

The Company currently owns a modern fleet of four product tankers (including Pyxis Epsilon) engaged in seaborne transportation of refined petroleum products and other bulk liquids as well as a controlling interest in a joint venture that owns a single dry bulk vessel. The Company is positioned to opportunistically expand and maximize its fleet due to significant capital resources, competitive cost structure, strong customer relationships, and an experienced management team whose interests are aligned with those of its shareholders. For more information, visit: http://www.pyxistankers.com. The information on the Company’s website is not incorporated into and does not form a part of this release.

 Forward Looking Statements

This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995 in order to encourage companies to provide prospective information about their business. These statements include statements about our plans, strategies, goals financial performance, prospects, or future events or performance and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expects,” “seeks,” “predict,” “schedule,” “projects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “targets,” “continue,” “contemplate,” “possible,” “likely,” “might,” “will,” “should,” “would,” “potential,” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. All statements that are not statements of either historical or current facts, including among other things, our expected financial performance, expectations or objectives regarding future and market charter rate expectations and, in particular, the effects of COVID-19 and the war in the Ukraine, on our financial condition and operations and the product tanker industry, in general, are forward-looking statements. Such forward-looking statements are necessarily based upon estimates and assumptions. Although the Company believes 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 the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs, or projections. The Company’s actual results may differ, possibly materially, from those anticipated in these forward-looking statements as a result of certain factors, including changes in the Company’s financial resources and operational capabilities and as a result of certain other factors listed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. In addition, the Company is not obligated under the terms of its share repurchase program to purchase any of its common shares, and the program may be terminated, suspended, or reinstated at any time on the Company’s discretion and without notice. For more information about risks and uncertainties associated with our business, please refer to our filings with the U.S. Securities and Exchange Commission, including without limitation, under the caption “Risk Factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any information in this press release, including forward-looking statements, to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws.

Company

Pyxis Tankers Inc.
59 K. Karamanli Street
Maroussi 15125 Greece
info@pyxistankers.com

Visit our website at www.pyxistankers.com

Company Contact

Henry Williams
Chief Financial Officer
Tel: +30 (210) 638 0200 / +1 (516) 455-0106
Email: hwilliams@pyxistankers.com

Source: Pyxis Tankers Inc.