Castor Maritime announced the pricing of an upsized underwritten public offering of 51,400,000 units at a price of $0.35 per unit. Each unit consists of one common share (or prefunded warrant in lieu thereof) and one Class A warrant to purchase one common share, and will immediately separate upon issuance. The gross proceeds of the offering to the Company, before underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $18.0 million. The Company intends to use the net proceeds of the offering for capital expenditures, working capital, to make vessel or other asset acquisitions or for other general corporate purposes, or a combination thereof.
Each Class A warrant is immediately exercisable for one common share at an exercise price of $0.35 per share and will expire five years from issuance. The offering is expected to close on or about June 26, 2020, subject to customary closing conditions.
Maxim Group LLC is acting as sole book-running manager in connection with the offering.
The Company has granted the underwriter a 30-day option to purchase up to an additional 7,710,000 shares of common stock or prefunded warrants and/or 7,710,000 Class A warrants, at the public offering price less discounts and commissions.