Castor Maritime Inc. Announces Pricing of $17.3 Million Registered Direct Offering
Castor Maritime Inc. announced today that it has entered into a securities purchase agreement with certain unaffiliated institutional investors to issue approximately 57,750,000 of its common shares (the “Common Shares”) in a registered direct offering and warrants to purchase Common Shares in a concurrent private placement.
Under the terms of the securities purchase agreement, the Company has agreed to sell 57,750,000 Common Shares. In a concurrent private placement, the Company has agreed to issue warrants to purchase up to 57,750,000 Common Shares. The warrants will be exercisable upon issuance and have an exercise price of $0.35 per share. The warrants will expire 5 years from the issuance date. The purchase price for one Common Share and one warrant will be $0.30. The gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be approximately $17.3 million before deducting the placement agent’s fees and other estimated offering expenses. The registered direct offering and concurrent private placement are expected to close on or about July 15, 2020, subject to the satisfaction of customary closing conditions.
Maxim Group LLC is acting as sole placement agent for the offering.
The Common Shares being sold pursuant to the registered direct offering are being sold pursuant to a shelf registration statement on Form F-3 (File No. 333-232052), previously filed with the Securities and Exchange Commission (the “SEC”) on June 10, 2019 and declared effective on June 21, 2019. Such securities are being offered only by means of a prospectus. A prospectus supplement and the accompanying prospectus relating to and describing the terms of the registered direct offering will be filed with the SEC. The warrants sold in the concurrent private placement, along with the Common Shares underlying such warrants, have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are offered pursuant to an exemption from the registration requirements of Section 5 of the Securities Act contained in Section 4(a)(2) thereof and/or Regulation D promulgated thereunder. When available, copies of the prospectus supplement and the accompanying prospectus relating to the registered direct offering may be obtained at the SEC’s website at www.sec.gov or by contacting Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, at 212-895-3745.
Source: Castor Maritime Inc.