Performance Shipping Inc. (NASDAQ: DCIX), a global shipping company specializing in the ownership of containerships and tanker vessels, announced on Wednesday (Nov 20) that it has agreed to acquire from a related party all of the issued and outstanding shares of an entity that has entered into a contract to purchase one 2007 built Aframax tanker vessel from an unaffiliated third party seller for a total purchase price of US$26.0 million. The transaction was approved by a majority of the disinterested members of the board of directors of the Company.
The Company will acquire the entity from the Company’s Chairman and Chief Executive Officer, Mr. Symeon Palios, for an aggregate purchase price of US$11.0 million, which will be paid in common shares of the Company at a per share price of US$0.9027, which is equal to the undiscounted closing price of the common stock on the NASDAQ stock exchange on November 18, 2019. The US$11.0 million purchase price of the entity is equal to the deposit previously paid to the vessel’s seller by an affiliate of the Company’s Chairman. The balance of the purchase price payable under the contract is expected to be funded through cash on hand and/or bank financing. The vessel is expected to be delivered at the latest by January 31, 2020.
Commenting on the transaction, Mr. Symeon Palios, the Company’s Chairman and Chief Executive Officer, stated: “I am happy to be able to facilitate the Company’s continued expansion of its fleet with the sale of this Aframax vessel. By taking consideration solely in common shares at their current market price, this transaction both supports the Company’s balance sheet and reflects my continued confidence in its future growth.”
Following the closing of this transaction, the Company will have 49,021,001 common shares and another 1,500 Series B-2 Preferred Shares issued and outstanding.
Source: Performance Shipping