Performance Shipping Inc. Announces Agreement to Acquire an Aframax Tanker and US$11.0 Million Investment by Its Chairman
21 November 2019 - 12:55AM
Performance Shipping Inc. (NASDAQ: DCIX), (the “Company”), a global
shipping company specializing in the ownership of containerships
and tanker vessels, today announced that it has agreed to acquire
from a related party all of the issued and outstanding shares of an
entity that has entered into a contract to purchase one 2007 built
Aframax tanker vessel from an unaffiliated third party seller for a
total purchase price of US$26.0 million. The transaction was
approved by a majority of the disinterested members of the board of
directors of the Company.
The Company will acquire the entity from the
Company’s Chairman and Chief Executive Officer, Mr. Symeon Palios,
for an aggregate purchase price of US$11.0 million, which will be
paid in common shares of the Company at a per share price of
US$0.9027, which is equal to the undiscounted closing price of the
common stock on the NASDAQ stock exchange on November 18, 2019. The
US$11.0 million purchase price of the entity is equal to the
deposit previously paid to the vessel’s seller by an affiliate of
the Company’s Chairman. The balance of the purchase price payable
under the contract is expected to be funded through cash on hand
and/or bank financing. The vessel is expected to be delivered at
the latest by January 31, 2020. Commenting on the transaction, Mr.
Symeon Palios, the Company’s Chairman and Chief Executive Officer,
stated: “I am happy to be able to facilitate the Company’s
continued expansion of its fleet with the sale of this Aframax
vessel. By taking consideration solely in common shares at
their current market price, this transaction both supports the
Company’s balance sheet and reflects my continued confidence in its
future growth.” Following the closing of this transaction,
the Company will have 49,021,001 common shares and another 1,500
Series B-2 Preferred Shares issued and outstanding. About
the Company Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of
vessels. The Company’s current fleet of vessels is employed
primarily on time charters with leading charterers.
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," "intends," "estimate," "forecast,"
"project," "plan," "potential," "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. 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 the strength of world economies and currencies,
general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for containership capacity,
changes in our operating expenses, including bunker prices,
drydocking and insurance costs, the market for our vessels,
availability of financing and refinancing, 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,
vessel breakdowns and instances of off-hires and other factors.
Please see our filings with the Securities and Exchange Commission
for a more complete discussion of these and other risks and
uncertainties.
Corporate Contact:
Ioannis Zafirakis
Director, Chief Strategy Officer and Secretary
Telephone: +30-216-600-2400
Email: izafirakis@pshipping.com
Website: www.pshipping.com
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: +1-203-972-8350
Email: enebb@optonline.net
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