Follow on convertible preferred offering raises $6.2 million. About 308k shares of 7.75% Series A convertible preferred shares priced at $20/share. While no warrants were issued and conversion price remains $1.40/share, the preferred shares were priced at a discount of 20% and a yield of 9.7%.Acquisition set to close shortly. The acquisition of a MR tanker for $20.0 million was announced about a month ago, and the transaction should close by late July. A new seven year term loan of $13.5 million at Libor plus 480 basis points and existing cash will finance the acquisition.Debt conversion boosts principal owner interest to ~49%. A restructuring of a promissory note extended $3.0 million out two years, paid off $1 million and converted $1 million into 1.1 million common shares at average price of $0.92/share. As a result, the founder/CEO owns 18.69 million shares, or 48.8% of the 38.32 million shares outstanding. Pro forma for all of the recent transactions, total debt increases to $60 million, preferred stock increases to $11.2 million and cash should be $19 million in 3Q2021.Adjusting 2021 EBITDA estimate. Recent charters moved down into $13.25/day range for Theta and $12.0k/day for the Malou. Other tankers working in spot market and MR forward cover remains low at 37% of available 3Q2021 days booked at $13.0k/day. As a result, our new 2021 EBITDA estimate of $5.4 million is based on TCE rates of $11.65k/day.Maintain Market Perform rating due to challenging near term outlook. We have a positive view on refined product tanker intermediate term fundamentals, based on a limited order book and potential demand recovery, and believe that the upcoming acquisition is a positive move, but the near-term outlook remains challenging. While the stock has fallen back recently and is down 11% in 2Q2021, we continue wait for stronger signs of a turn in the refined product tanker market. Read More >>