Limassol, Cyprus - October 23, 2019
Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, announced today that, in connection with a previously announced Memorandum of Agreement dated October 14, 2019, it has taken delivery, through one of its wholly-owned subsidiaries, of the M/V Magic Moon (the “Magic Moon Acquisition”).
The Magic Moon Acquisition was financed using a combination of cash on hand and the proceeds from a $7.5 million interest free unsecured bridge loan, which was provided to the Company byan entity controlled by Petros Panagiotidis, Castor’s Chairman, Chief Executive Officer and Chief Financial Officer (the “$7.5 Million Bridge Financing”).
The $7.5 Million Bridge Financing, maturing on December 31, 2019, allowed the Company to purchase the vessel immediately while assessing financing options for its fleet.
The Company has received an Offer Letter from a first class Bank for a 5-year term loan, which is expected to be entered into by the end of the year, subject to normal closing conditions.
The Board of Directors of the Company (the “Board”) and a Special Committee consisting of disinterested and independent members of the Board approved the $7.5 Million Bridge Financing.
Petros Panagiotidis, Chief Executive Officer and Chief Financial Officer of Castor commented: “We are pleased to have taken deliveryof the M/V Magic Moon, which is the second vessel we acquiredsince our listing on NASDAQ last February. We believe that this acquisition will prove to be accretive to our profitability and increase shareholder value over time. We are committed to continue taking advantage of market opportunities for further growing our fleet.”
About Castor Maritime Inc.
Castor Maritime Inc. is an international provider of shipping transportation services through its ownership of dry bulk vessels. The Company’svessels areemployed primarily onmedium-term charters and transporta range of dry bulk cargoes, including such commodities as coal, grain and other materials along worldwide shipping routes.
The Company'sfleet currently consists of three Panamax dry bulk carriers. For more information please visit the company’s website at www.castormaritime.com
Castor Maritime press release