Castor Maritime Inc. Announces Pricing of $17.3 Million Registered Direct Offering
July 13 2020 - 09:00AM
Castor Maritime Inc. (the “Company”) (NASDAQ: CTRM) announced today
that it has entered into a securities purchase agreement with
certain unaffiliated institutional investors to issue approximately
57,750,000 of its common shares (the “Common Shares”) in a
registered direct offering and warrants to purchase Common Shares
in a concurrent private placement.
Under the terms of the securities purchase
agreement, the Company has agreed to sell 57,750,000 Common Shares.
In a concurrent private placement, the Company has agreed to issue
warrants to purchase up to 57,750,000 Common Shares. The warrants
will be exercisable upon issuance and have an exercise price of
$0.35 per share. The warrants will expire 5 years from the issuance
date. The purchase price for one Common Share and one warrant will
be $0.30. The gross proceeds to the Company from the registered
direct offering and concurrent private placement are estimated to
be approximately $17.3 million before deducting the placement
agent’s fees and other estimated offering expenses. The registered
direct offering and concurrent private placement are expected to
close on or about July 15, 2020, subject to the satisfaction of
customary closing conditions.
Maxim Group LLC is acting as sole placement
agent for the offering.
The Common Shares being sold pursuant to the
registered direct offering are being sold pursuant to a shelf
registration statement on Form F-3 (File No. 333-232052),
previously filed with the Securities and Exchange Commission (the
“SEC”) on June 10, 2019 and declared effective on June 21, 2019.
Such securities are being offered only by means of a prospectus. A
prospectus supplement and the accompanying prospectus relating to
and describing the terms of the registered direct offering will be
filed with the SEC. The warrants sold in the concurrent private
placement, along with the Common Shares underlying such warrants,
have not been registered under the Securities Act of 1933, as
amended (the “Securities Act”), and are offered pursuant to an
exemption from the registration requirements of Section 5 of the
Securities Act contained in Section 4(a)(2) thereof and/or
Regulation D promulgated thereunder. When available, copies of the
prospectus supplement and the accompanying prospectus relating to
the registered direct offering may be obtained at the SEC’s website
at www.sec.gov or by contacting Maxim Group LLC, 405 Lexington
Avenue, 2nd Floor, New York, NY 10174, at 212-895-3745.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of, these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification of these securities under the
securities laws of any such state or jurisdiction.
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 StatementsMatters 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 KarlisCapital LinkEmail:
castormaritime@capitallink.com
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