What happened
Shares of Castor Maritime (CTRM -2.44%) jumped 12.5% on Monday after the shipping transportation company announced the acquisition of two vessels.
So what
Castor Maritime agreed to acquire two Panamax dry bulk carriers from undisclosed third parties for prices of $19.06 million and $21 million. One of the vessels -- a 2013 Japanese-built dry bulk carrier -- will come with a time-charter contract attached. The daily gross charter rate of $11,650 will have roughly three months remaining.
Castor Maritime expects to take delivery of the ships by the fourth quarter.
Castor Maritime's stock price rose sharply on Monday. Image source: Getty Images.
Castor Maritime also said it took delivery of the M/V Magic Vela, a 2011 Chinese-built Panamax dry bulk carrier it agreed to purchase on April 28.
"Following the delivery of M/V Magic Vela, our fleet consists of 14 vessels, and after the completion of all our announced acquisitions, our fleet will consist of 26 vessels across the dry bulk and tanker segments," CEO Petros Panagiotidis said in a press release.
Now what
Castor Maritime raised roughly $125 million via a stock offering in April. Its share price took a hit on the news as investors were miffed at the resulting dilution. However, the company is using its newfound cash to rapidly increase the size of its fleet. It's a risky strategy but one that could pay off if shipping rates head higher as the economy recovers.
