Castor Maritime Inc., a global shipping company specializing in the ownership of dry bulk vessels, announced 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 by an 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 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 delivery of the M/V Magic Moon, which is the second vessel we acquired since 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.”