Castor Announces Financing Agreements
28 January 2020 - 9:10AM
Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a
global shipping company specializing in the ownership of dry bulk
vessels, today announced that it has successfully entered into two
agreements: (i) a secured term loan financing agreement and (ii) a
non-brokered private placement of unsecured convertible
debentures. The secured term loan facility and the
convertible debentures are subject to normal closing conditions.
On January 23, 2020, the Company entered into a
$4.5 million secured term loan facility with a financial
institution, through one of its ship-owning subsidiaries (“the M/V
Magic Sun Financing”). The loan is expected to be drawn down on
January 31, 2020, will have a tenure of five years from the
drawdown date and will bear interest at a margin plus LIBOR per
annum.
Further, on January 27, 2020, the Company
entered into a securities purchase agreement with an institutional
investor (the “Investor”), pursuant to which the Company will sell
and the Investor will purchase up to three convertible debentures
for a maximum aggregate price of $5.0 million. The debentures will
mature twelve months from their issuance and are convertible into
common shares of the Company. The sale of the first convertible
debenture in the original principal amount of $2.0 million also
closed today. The other two debentures will be issued in the
original principal amount of $1.5 million each upon the fulfilment
of certain conditions relating to registration rights. The Company
also entered into a registration rights agreement relating to the
common shares underlying the convertible debentures.
Castor intends to use the net proceeds from both
financing transactions for working capital and other general
corporate purposes, including growing the Company’s fleet.
Petros Panagiotidis, Chief Executive Officer and
Chief Financial Officer of Castor commented:
“We are pleased to have successfully
completed these two financing agreements. We believe that the
inflow of gross proceeds of $9.5 million to our working capital
reserves, at this point in the dry bulk market cycle, will allow us
to take advantage of attractive growth opportunities potentially
presented to us in the near future.”
About Castor Maritime Inc.
Castor Maritime Inc. is an international
provider of shipping transportation services through its ownership
of dry bulk vessels. The Company’s vessels are employed primarily
on medium-term charters and transport a range of dry bulk cargoes,
including such commodities as coal, grain and other materials along
worldwide shipping routes.
The Company's fleet currently consists of three
Panamax dry bulk carriers.
For more information please visit the company’s
website at www.castormaritime.com.
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. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is 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 the Company’s view, could cause
actual results to differ materially from those discussed in the
forward‐looking statements include general dry bulk shipping market
conditions, including fluctuations in charterhire 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 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 availability of financing and
refinancing and grow our business, vessel breakdowns and instances
of off‐hire, risks associated with vessel construction, 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 the Company disclaims 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 PanagiotidisCastor Maritime Inc. Email:
info@castormaritime.com
Media Contact: Kevin Karlis Capital LinkEmail:
castormaritime@capitallink.com
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