Another Cape acquisition announced. A 2009-built Cape, to be named Friendship, will be acquired shortly for $24.6 million. The acquisition will be funded with cash on hand, but future debt financing in the 50% range is likely, similar to the other acquisitions completed this year. The acquisition, combined with the divestiture, should have a positive impact on the fleet profile, with the average age of the Capes dropping to 11.4 years.Partial offset with net proceeds from sale of oldest Cape. In conjunction with the acquisition, the Friendship, a 2001-built Cape, will be sold for ~$12 million. The sale, which avoids an upcoming survey, should net ~$6 million after paying off secured debt of ~$6 million.No change in financing stance. The latest transactions, which pushes the announced acquisitions into the $160 million range before considering the asset sale of $12 million, should not have a major impact on the financing plans. Debt secured by the to-be-sold Cape should be replaced with debt on the to-be-acquired Cape by the end of 3Q2021. Pro forma cash should be in the $30 million in 3Q2021 and one Cape will remain unencumbered. While the transaction will require cash of ~$6 million, financial flexibility should remain good and we believe that no additional equity will be issued despite the recent F-3 filing.Remain positive on dry bulk market, including Capes. Even though Cape TCE rates were volatile in 2Q2021, we believe that rates are likely to move higher in 2H2021. Once the last two acquisition and one sale close in 3Q2021, the Cape fleet will increase to 16. Operating leverage will also be higher, with a $1.0k/day change in Cape TCE rates impacting cash flow/EBITDA by $5.8 million, or ~8% of our current 2021 EBITDA estimate.Maintain Outperform rating and price target of $1.50/share. The risk/reward profile remains favorable, especially after the modest 6% gain in 2Q2021 has been offset by the 6% loss in 3Q2021 to date. The expansion of the Cape fleet and a bias toward time charters with indexed rates should help capture upside rate optionality and lower financial leverage by yearend 2021. Read More >>