NEWPORT,
R.I., Oct. 7, 2024 /PRNewswire/ -- Pangaea
Logistics Solutions Ltd. ("Pangaea" or the "Company") (Nasdaq:
PANL), a global provider of comprehensive maritime logistics
solutions, today announced a definitive agreement to purchase the
remaining 50% equity ownership of its consolidated subsidiary,
Nordic Bulk Partners LLC, from HS Nordic LLC, for $17.2 million in cash. Nordic Bulk Partners LLC
was established in 2019 as a joint venture to construct four Ice
Class 1A Post-Panamax dry bulk vessels. The transaction is expected
to be completed by November 1, 2024
subject to customary closing terms and conditions.
Upon the completion of the transaction, Pangea will own 100% of
the equity in Nordic Bulk Partners. The terms of the Nordic Bulk
Partners operating agreement include ownership put and call
provisions, which have been negotiated and exercised a year earlier
than originally stipulated. HS Nordic's 50% equity ownership was
recorded on Pangaea's balance sheet as of June 30, 2024 as a long term liability of
$16.6 million, which will be
extinguished as a result of this purchase
"This strategic move to take full ownership of these four modern
dry bulk vessels further consolidates our fleet of niche Ice Class
1A vessels, cleans up our balance sheet, and improves our operating
cash generation" stated Mark
Filanowski, Pangaea's Chief Executive Officer. "We continue
to pursue our strategic initiative of investing in our fleet of
owned vessels, while taking advantage of the favorable macro
backdrop in the dry bulk market to unlock incremental net asset
value and maximize future returns on our owned fleet. We thank
Hudson Structured Capital Management for their partnership in the
expansion of our ice class fleet, which has been instrumental since
the delivery of the vessels in 2021."
ABOUT PANGAEA LOGISTICS SOLUTIONS LTD.
Pangaea Logistics Solutions Ltd. (Nasdaq: PANL) provides
logistics services to a broad base of industrial customers who
require the transportation of a wide variety of dry bulk cargoes,
including grains, pig iron, hot briquetted iron, bauxite, alumina,
cement clinker, dolomite, and limestone. The Company addresses the
transportation needs of its customers with a comprehensive set of
services and activities, including cargo loading, cargo discharge,
vessel chartering, and voyage planning. Learn more at
www.pangaeals.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are based on our
current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. The Company disclaims any obligation to publicly update
or revise these statements whether as a result of new information,
future events or otherwise, except as required by law. Such risks
and uncertainties include, without limitation, the strength of
world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes
in demand for dry bulk shipping capacity, changes in our operating
expenses, including bunker prices, dry-docking and insurance costs,
the market for our vessels, availability of financing and
refinancing, charter counterparty performance, ability to obtain
financing and comply with covenants in such financing arrangements,
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, vessels breakdowns and instances of
off-hires and other factors, as well as other risks that have been
included in filings with the Securities and Exchange Commission,
all of which are available at www.sec.gov.
INVESTOR RELATIONS CONTACTS
Gianni Del Signore
Chief Financial Officer
401-846-7790
Investors@pangaeals.com
Noel Ryan or Stefan Neely
Vallum Advisors
PANL@val-adv.com
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SOURCE Pangaea Logistics Solutions LTD
