Castor Maritime Inc. Announces Amendment to Its 9.75% Series A Cumulative Redeemable Perpetual Preferred Shares and Waiver of All Accrued Dividends

About this update from Castor Maritime Inc.

[{"type":"text","content":"LIMASSOL, Cyprus, Oct. 11, 2019 (GLOBE NEWSWIRE) -- Castor Maritime Inc. (NASDAQ: CTRM), (“Castor” or the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today announced an agreement with all of the holders of its 9.75% Series A Cumulative Redeemable Perpetual Preferred Shares (the “Series A Preferred Shares”) to waive all accumulated dividends and to adopt and to Amend and Restate the Statement of Designations of its Series A Preferred Shares (the “Agreement”).\n Pursuant to the Agreement, the Company will issue 300,000 common shares to the holders of the Series A Preferred Shares in exchange for the waiver of approximately $4.3 million worth of dividends accumulated on the Series A Preferred Shares, for the period since their original issuance to June 30, 2019. Following this issuance, the Company will have 3,318,112 issued and outstanding common shares. The Series A Preferred Shareholders further agreed to waive all dividend obligations on the Series A Preferred Shares during the period from July 1, 2019 until December 31, 2021. The Company and the Series A Preferred Shareholders also agreed to a fixed default dividend payment rate, which replaces and reduces an increasing rate, an increase in the redemption price of the Series A Preferred Shares to $30 from $25 per share if the Company completes an optional cash redemption and an increase in the liquidation preference to $30 per Series A Preferred Share. As a result of the foregoing, the Company no longer has any restriction declaring dividends for holders of its common shares and the Amended and Restated Statement of Designations does not impose any such restrictions during the period from July 1, 2019 to December 31, 2021. Petros Panagiotidis, Chief Executive Officer and Chief Financial Officer of Castor commented: “We are extremely pleased to announce that we have reached an agreement to settle all our Series A Preferred Shares dividend obligations in a manner that is advantageous to the Company. A lengthy negotiation process with the Series A Preferred Shareholders came to a successful completion which provides the Company with significant cash flow relief. In addition, and equally important, in the absence of any dividend payment obligations towards our Series A Preferred Shareholders, it allows for potential common stock dividen...

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