Limassol, Cyprus, January 27, 2020
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 loanfinancingagreement 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 SunFinancing”).
The loan is expected to be drawn down onJanuary 31, 2020, will have a tenureof five years from the draw down date and will bearinterest at a marginplus LIBOR per annum. Further,on January 27, 2020, the Company entered into a securities purchase agreement with aninstitutional 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 twelvemonths fromtheir 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 closedtoday. 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 transactionsfor 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 tohave successfully completed these twofinancingagreements. We believe that theinflow 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'sfleet currently consists of threePanamax dry bulk carriers. For more information please visit the company’s website at www.castormaritime.com
Castor Maritime press release