OceanPal Inc. Announces Agreement to Acquire an MR2 Tanker Vessel
July 16 2024 - 9:05AM
OceanPal Inc. (NASDAQ:OP) (“OceanPal” or 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 to acquire an MR2 tanker
vessel, the m/t Zeze Start (the “Vessel”), for an aggregate
purchase price of $27.0 million from an entity controlled by a
director of the Company. The transaction was unanimously approved
by the Company’s Board of Directors and reflects OceanPal’s view
that it is the right time to diversify the Company’s fleet so as to
take advantage of opportunities in the product tanker sector.
Commenting on the transaction, Mr. Robert Perri,
the Company’s Chief Executive Officer, stated that, “The Board’s
decision to enter the product tanker space at this time marks an
exciting development in the Company’s corporate strategy to operate
a diversified fleet amid continued optimism in the product tanker
sector.”
The Vessel is expected to be delivered to the
Company during the third quarter of 2024. Of the purchase price,
$18.9 million will be paid in cash and the remaining amount will be
paid in the form of shares of the Company’s Series D Preferred
Stock, the terms of which are set forth in the amended and restated
statement of designation of the Series D Preferred Stock, to
support the Company’s future cash position. Of the cash purchase
price, $10.9 million will be paid to the seller after the delivery
of the Vessel but not later than November 26, 2024 pursuant to a
seller’s credit and will bear interest at the rate of 5.0% per
annum. The aggregate purchase price of the Vessel was based on two
independent third-party broker valuations, after taking into
account the share-based component of the consideration.
The m/t Zeze Start is a 2009-built tanker vessel
having a carrying capacity of 49,999 dwt.
Excluding the m/t Zeze Start and upon completion
of the previously announced sale of m/v Baltimore, OceanPal
Inc.’s fleet will consist of 4 dry bulk vessels (1 Capesize and 3
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 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, including the escalation of the conflict in
the Middle East, 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 and Governance Officer
and Secretary
Telephone: +30-210-9485-360
Email: mveniou@oceanpal.com
Website: www.oceanpal.com
X: @OceanPal_Inc
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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