OceanPal Inc. Announces Entry Into Agreement to Acquire Capesize Dry Bulk Vessel
June 15 2022 - 9:20AM
OceanPal Inc. (NASDAQ: OP) (the “Company”), a global shipping
company specializing in the ownership of vessels, today announced
that it has signed, through a separate wholly-owned subsidiary, a
Memorandum of Agreement dated June 13, 2022, to acquire the m/v
Baltimore from Diana Shipping Inc., a related party of the Company,
for an aggregate purchase price of $22.0 million. Of the purchase
price, 20% was paid in cash upon the signing of the Memorandum of
Agreement and the remaining 80% is expected to be paid upon
delivery of the vessel to OceanPal in the form of shares of a
new series of the Company's preferred stock, the terms of which
will be mutually agreed upon between the Company and Diana Shipping
Inc., and are expected to include, among other terms, a
preferred dividend and the right to convert the newly issued
preferred shares into OceanPal common shares at any time after
the issue date. The aggregate purchase price of the vessel was
based on the average of two independent broker valuations, after
adjusting for expected drydock expenses and taking into account the
share-based component of the consideration.
The m/v Baltimore is a 2005-built Capesize dry
bulk vessel having a carrying capacity of 177,243 dwt. The Company
expects to take delivery of the vessel in the third quarter of 2022
following the completion of the vessel’s next scheduled drydocking,
the cost of which is reflected in the aggregate purchase price. The
purchase of this vessel was made pursuant to the Company’s exercise
of a right of first refusal granted to it by Diana Shipping Inc. on
six identified vessels (including the m/v Baltimore) based on an
agreement dated November 8, 2021. The acquisition was approved by a
committee of independent members of the Company’s Board of
Directors.
OceanPal Inc.’s fleet currently consists of 3
dry bulk vessels (1 Capesize and 2 Panamax). A table describing the
current OceanPal Inc. fleet can be found on the Company’s website,
www.oceanpal.com. Information contained on the Company’s website
does not constitute a part of this press release.
About the Company
OceanPal Inc. is a global provider of shipping
transportation services through its ownership of vessels. The
Company’s vessels currently transport a range of dry bulk cargoes,
including such commodities as iron ore, coal, grain and other
materials along worldwide shipping routes and it is expected that
the Company’s vessels will be primarily employed on short term time
and voyage charters following the completion of their current
employments.
Forward Looking Statements
Matters 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.
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,” “intends,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “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, Company management’s examination of historical
operating trends, data contained in the Company’s records and other
data available from third parties. Although the Company believes
that these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies that are difficult or impossible to predict and are
beyond the Company’s control, the Company cannot assure you that it
will achieve or accomplish these expectations, beliefs or
projections.
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 the severity, magnitude and
duration of the COVID-19 pandemic, including impacts of the
pandemic and of businesses’ and governments’ responses to the
pandemic on our operations, personnel, and on the demand for
seaborne transportation of bulk products; the strength of world
economies and currencies, general market conditions, including
fluctuations in charter rates and vessel values, changes in demand
for dry bulk shipping capacity, changes in the Company’s operating
expenses, including bunker prices, drydocking and insurance costs,
the market for the Company’s vessels, availability of financing and
refinancing, 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, including risks associated with the
continuing conflict between Russia and Ukraine and related
sanctions, potential disruption of shipping routes due to accidents
or political events, vessel breakdowns and instances of off-hires
and other factors. Please see the Company’s filings with the U.S.
Securities and Exchange Commission for a more complete discussion
of these and other risks and uncertainties. The Company undertakes
no obligation to revise or update any forward-looking statement, or
to make any other forward-looking statements, whether as a result
of new information, future events or otherwise.
Corporate Contact:
Margarita Veniou
Chief Corporate Development & Governance Officer
Telephone: +30-210-9485-360
Email: mveniou@oceanpal.com
Website: www.oceanpal.com
Twitter: @OceanPal_Inc
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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