Castor Maritime (NASDAQ:CTRM) stock is on the rise again Thursday after announcing its acquisition of two ships.
According to a news release, Castor Maritime has signed agreements that will have it acquiring two 2005 Korean-built Aframax LR2 tankers. The company is buying these ships through two of its subsidiaries from a third-party seller.
Castor Maritime notes that the deal will have it paying a total of $27.2 million for the two ships. The company also says that each of these ships has a minimum gross daily hire of $15,000. The ships are also signed on with a reputable charterer for one year and there’s an option to extend that contract for one more year.
Castor Maritime also points out that each of these ships has recently completed scheduled special surveys and dry-dockings. They also come equipped with ballast water treatment systems. The acquisition deal is set to close in the first quarter of 2021.
Petros Panagiotidis, CEO of Castor maritime, had this to say about the news boosting CTRM stock up.
“We are very excited to be entering the tanker market, at what we believe is an opportune time for this sector. While the tanker market may face continued headwinds in the short to medium term, the attached time charter contracts provide us with cash flow security while the profit sharing arrangement allows us to benefit further should a rate recovery materialize within their duration.”
CTRM stock was up 40.8% as of noon Thursday.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.