Summary
- Proposed spin-off of the company's tanker fleet into a new, Nasdaq-listed entity named Toro Inc. has been delayed.
- Based on disclosures made in Toro's recently revised registration statement, transaction terms have been altered in favor of Castor Maritime.
- Company to retain approximately $40 million more value than previously anticipated thus resulting in estimated post-spin-off NAV increasing by 15% from $4.50 to $5.18 per share.
- Unfortunately, I think Castor Maritime continues to be managed primarily to the benefit of founder Petros Panagiotidis and his family, a common theme among many smaller Greece- and Cyprus-based shipping companies.
- With the record date for the Toro spin-off having passed already and dry bulk markets expected to remain weak in the near future, I am downgrading shares from "Speculative Buy" to "Hold".
For further details see:
Castor Maritime: Retaining More Value In Upcoming Toro Spin-Off