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Performance Shipping Inc. Announces Agreement to Acquire an Aframax Tanker and US$11.0 Million Investment by Its Chairman

/EIN News/ -- ATHENS, Greece, Nov. 20, 2019 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: DCIX), (the “Company”), a global shipping company specializing in the ownership of containerships and tanker vessels, today announced that it has agreed to acquire from a related party all of the issued and outstanding shares of an entity that has entered into a contract to purchase one 2007 built Aframax tanker vessel from an unaffiliated third party seller for a total purchase price of US$26.0 million. The transaction was approved by a majority of the disinterested members of the board of directors of the Company.

The Company will acquire the entity from the Company’s Chairman and Chief Executive Officer, Mr. Symeon Palios, for an aggregate purchase price of US$11.0 million, which will be paid in common shares of the Company at a per share price of US$0.9027, which is equal to the undiscounted closing price of the common stock on the NASDAQ stock exchange on November 18, 2019. The US$11.0 million purchase price of the entity is equal to the deposit previously paid to the vessel’s seller by an affiliate of the Company’s Chairman. The balance of the purchase price payable under the contract is expected to be funded through cash on hand and/or bank financing. The vessel is expected to be delivered at the latest by January 31, 2020.

Commenting on the transaction, Mr. Symeon Palios, the Company’s Chairman and Chief Executive Officer, stated: 

“I am happy to be able to facilitate the Company’s continued expansion of its fleet with the sale of this Aframax vessel.  By taking consideration solely in common shares at their current market price, this transaction both supports the Company’s balance sheet and reflects my continued confidence in its future growth.”
 
Following the closing of this transaction, the Company will have 49,021,001 common shares and another 1,500 Series B-2 Preferred Shares issued and outstanding.

About the Company

Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of vessels. The Company’s current fleet of vessels is employed primarily on time charters with leading charterers. 

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for containership capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

Corporate Contact:
                    Ioannis Zafirakis
                    Director, Chief Strategy Officer and Secretary
                    Telephone: +30-216-600-2400
                    Email: izafirakis@pshipping.com
                    Website: www.pshipping.com
                          
                    Investor and Media Relations:
                    Edward Nebb
                    Comm-Counsellors, LLC
                    Telephone: +1-203-972-8350
                    Email: enebb@optonline.net
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