Closing of acquisition for $32 million enhances MR fleet. The acquisition of the 2017-built Lamda was financed with a new loan of $21.7 million, a promissory note of $3.0 million, equity of $3.0 million and cash of $4.3 million. After completing a survey under way at a cost of ~$1.0 million, the Lamda will be available in January.Pro forma debt increases to $84.1 million. Including refinancing Malou debt of $7.3 million, we estimate that total debt will approximate $84.1 million, including related party notes of $6.0 million. Preferred stock remains $11.2 million and cash drops into the $5.3 million range in 4Q2021.Major shareholder interest back above 50%. In the Lamda transaction, equity of $3.0 million was issued to Eddie Valentis at an average price of ~$0.725/share. As a result, his ownership interest increased to 22.83 million shares, or 53% of outstanding shares, up from 18.69 million shares, or ~49%, in 3Q2021. Including 1.1 million shares issued in the conversion of a $1.0 million note in 2Q2021, a total of 5.2 million shares have been issued to Mr. Valentis at an average price of $0.765/share over the past three quarters. 180-day extension of Nasdaq listing deficiency. On December 14th, the Nasdaq Stock Market (Nasdaq), granted an extension until June 13, 2022 to regain compliance with the minimum bid price listing requirement. In order to cure the deficiency, the closing bid price needs to be $1.00/share or higher for at least ten consecutive business days. Prior deficiencies have been cured by stock price performance, but all options, including a reverse stock split, will be considered.Maintain Market Perform rating due to challenging near term outlook. We have a positive view on intermediate fundamentals for the refined product tanker market, based on a limited order book, low inventories and budding demand recovery, and believe that the recent acquisitions are positive, but the near-term outlook still appears challenging. While the stock has fallen back from the early 2021 highs and is down 38% this year, including drops of 14% in 2Q2021, 12% in 3Q2021 and 33% in 4Q2021, we continue to wait for stronger signs that the refined product tanker market has turned upward. Read More >>