Athens-based dry bulk shipping company OceanPal, through a separate wholly-owned subsidiary, has entered into a memorandum of agreement (MOA) to acquire an MR2 tanker vessel for an aggregate purchase price of US$27 million from an entity controlled by a director of the company.
The transaction was unanimously approved by the company’s board of directors and reflects OceanPal’s view that it is the right time to diversify the company’s fleet so as to take advantage of opportunities in the product tanker sector.
The vessel, identified as the 2009-built product tanker Zeze Start, is scheduled to be delivered to the company during the third quarter of 2024. Of the purchase price, US$18.9 million will be paid in cash and the remaining amount will be paid in the form of shares of the company’s Series D Preferred Stock, the terms of which are set forth in the amended and restated statement of designation of the Series D Preferred Stock, to support the company’s future cash position.
Of the cash purchase price, US$10.9 million will be paid to the seller after the delivery of the vessel but not later than November 26, 2024 pursuant to a seller’s credit and will bear interest at the rate of 5.0 per cent per annum. The aggregate purchase price of the vessel was based on two independent third-party broker valuations, after taking into account the share-based component of the consideration.
Excluding Zeze Start and upon completion of the previously announced sale of the dry bulk vessel Baltimore, OceanPals fleet will consist of four dry bulk vessels (one Capesize and three Panamaxes).
