Castor Maritime Inc. (CTRM) sailed up and down the stock market waves and now wants to sail a big wave by offering 51.4 million units worth $18 million at a price of $0.35 per unit. This stepped up and public offer runs until June 26.
About Castor Maritime Inc.
Castor Maritime is a shipping company specializing in the provision of maritime transport services with a wide range of dry bulk cargo that they carry on global shipping routes. It is a young and ambitious company that was founded in 2017 and acquired its first ship in September. The fleet now consists of three bulk carriers. Castor’s primary goal is to expand the fleet by taking over other bulk carriers with the profits they make.
What does the share includes
Each unit shall consist of one common share (or prefinanced warrant instead) and one Class A guarantee for the purchase of one common share, and shall separate immediately upon issue. Each Class A warrant is exercisable immediately for one common share at an exercise price of $0.35 per share and expires five years after issuance. The offer is expected to close on or about June 26, 2020, subject to the usual closing conditions.
Source: Castor Maritime Inc.
The vision behind the offer
The net proceeds of the offering will be used for further investments, working capital, fleet expansion, other assets, for other general corporate asset purposes or a combination thereof. The Company incurred a net loss of $259,868 earlier this year for the three months ended March 31, 2020. The loss in that period is $0.07 per share. Due to the expansion of the fleet, significant investments have been made which have also resulted in a 200% increase in time charter revenues. Castor indicates that the COVID-19 has had a major impact on the revenues, because they have been delayed a.o. the dry dock repair of one of the ships. The company is convinced that now that COVID-19 is declining in various parts of the world and the economy is picking up again, the figures speak again in favour of shipping.
The share at this moment (June, 25)
There is much talk and speculation about the share on social media channels. The share previously ended at $0.4265 and currently stands at $0.4558 and has a value increase of +6.87%. The speculation is that tomorrow the share can increase in the form of a big wave.
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