Castor Maritime Inc. Announces Closing of $17.3 Million Registered Direct Offering
July 15 2020 - 1:06PM
Castor Maritime Inc. (the “Company”) (NASDAQ: CTRM) announced today
the closing of its previously announced registered direct offering
of 57,750,000 of its common shares (the “Common Shares”) and
warrants to purchase Common Shares in a concurrent private
placement.
Under the terms of the securities purchase
agreement, the Company sold 57,750,000 Common Shares. In a
concurrent private placement, the Company has issued warrants to
purchase up to 57,750,000 Common Shares. The warrants are
exercisable upon issuance and have an exercise price of $0.35 per
share. The warrants expire 5 years from the issuance date. The
purchase price for one Common Share and one warrant was $0.30. The
gross proceeds to the Company from the registered direct offering
and concurrent private placement are approximately $17.3 million
before deducting the placement agent’s fees and other offering
expenses.
Maxim Group LLC is acting as sole placement
agent for the offering.
The Common Shares sold pursuant to the
registered direct offering were 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 was
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 were 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. 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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