ATHENS, GREECE, June 15, 2022 – 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.
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