- Aggressive fleet expansion continues with the company reportedly having committed to purchase 15 additional vessels over the past four weeks alone.
- Aggregate cash outflows upon delivery are estimated at almost $240 million, thus resulting in the requirement to raise additional equity in a range of $100-$125 million.
- June 28 deadline for regaining compliance with the Nasdaq $1.00 minimum bid price requirement approaching. Expect the company to conduct a reverse stock split to cure the deficiency.
- With expectations for both a near-term equity raise and reverse stock split, the shares should be avoided.
- Investors looking for exposure to dry bulk shipping should rather consider buying shares of proven industry leaders like Star Bulk Carriers, Golden Ocean Group, Genco Shipping & Trading and Eagle Bulk Shipping or taking advantage of the opportunity currently provided at Pangaea Logistics Solutions.
For further details see:
Castor Maritime: Prepare For Another Equity Offering As Aggressive Fleet Expansion Continues