- Castor Maritime ( NASDAQ: CTRM ) said Wednesday it will effect a spin-off of its tanker fleet comprising one Aframax, five Aframax/LR2 and two Handysize tankers, sending its shares 3.2% higher after the bell.
- Castor ( CTRM ) shareholders will receive two shares of new subsidiary Toro for every five Castor ( CTRM ) shares held at business close on Dec. 6.
- The spin-off is expected to enable Castor ( CTRM ) and Toro to increase focus on their respective businesses, enhance operational efficiencies and facilitate efficient expansion.
- Also, with the dividend distribution of Toro shares, Castor ( CTRM ) shareholders will have the flexibility to monetize or adjust equity holdings according to the shipping sectors of their interest.
- Toro, which will act as the holding company for the spun-off vessels, has applied to list its stock on Nasdaq Capital Market.
- Castor ( CTRM ) CEO Petros Panagiotidis has been appointed as CEO of Toro, effective once the spin-off is completed.
- There can be no assurance that the spin-off will occur or its terms or timing.
For further details see:
Castor Maritime stock gains 3% after the bell on proposed tanker fleet spin-off