Performance Shipping Inc. Announces Agreements to Acquire Two Aframax Tankers and US$10.0 Million Investment by Its Chairman
June 11 2019 - 9:20AM
Performance Shipping Inc. (NASDAQ:DCIX), (the “Company”), today
announced that it has agreed to acquire two entities, which have
signed contracts to purchase two 2011-built Aframax tanker vessels
from an unaffiliated third party seller for a total purchase price
of US$60.0 million. The transaction was unanimously approved by the
disinterested members of the board of directors of the Company.
The Company will acquire the two entities
affiliated with the Company’s Chairman and Chief Executive Officer,
Mr. Symeon Palios, for an aggregate purchase price of US$10.0
million, which will be paid in common shares of the Company at a
per share price of US$1.05, which is equal to the undiscounted
closing price of the common stock on the NASDAQ stock exchange on
June 7, 2019. The US$10.0 million purchase price of the two
entities is equal to the deposit previously paid to the vessels’
seller by the affiliates of the Company’s Chairman. The balance of
the purchase price payable under the contracts is expected to be
funded through cash on hand and bank financing. The first vessel
delivery is expected in the third quarter of this year and the
second in the fourth quarter.
Commenting on the transaction, the Company’s
Chairman and Chief Executive Officer stated:
“I am excited to be able to offer this
attractive opportunity to purchase high-specification Aframax
tankers to the Company at what I believe is a favourable time in
the tanker industry cycle. The acquisition of these vessels
represents an important step in the Company’s diversification from
the container industry into other areas of the shipping sector. The
sale of these contracts for common shares of the Company reflects
my view that now is an attractive time to invest in the Company as
it starts to rebuild its fleet.”
Following the closing of this transaction, the
Company will have 36,277,660 common shares and another 2,000
Series B-2 Preferred Shares issued and outstanding. Upon completion
of the above-mentioned entities’ acquisition, the Company will own
4 unencumbered containerships, 2 contracts to purchase 2 Aframax
tanker vessels, for which US$10.0 million have been paid as
deposit, plus approximately US$17.0 million of cash.
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of
vessels. The Company’s current fleet of vessels are employed
primarily on time charters with leading liner companies carrying
containerized cargo along worldwide shipping routes.
Cautionary Statement Regarding
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, 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," "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, 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.
In addition to these important factors, other
important factors that, in our 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 containership capacity,
changes in our operating expenses, including bunker prices,
drydocking and insurance costs, the market for our 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, potential
disruption of shipping routes due to accidents or political events,
vessel breakdowns and instances of off-hires and other factors.
Please see our filings with the Securities and Exchange Commission
for a more complete discussion of these and other risks and
uncertainties.
Corporate Contact:Ioannis
ZafirakisDirector, Chief Strategy Officer and SecretaryTelephone:
+30-216-600-2400Email: izafirakis@pshipping.comWebsite:
www.pshipping.com
Investor and Media Relations:Edward
NebbComm-Counsellors, LLCTelephone: +1-203-972-8350Email:
enebb@optonline.net
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