EuroDry Ltd. Announces Agreement To Acquire M/V Santa Cruz
- ByStartupStory | April 20, 2022
EuroDry Ltd, a leading operator of dry bulk vessels and provider of seaborne transportation for drybulk cargoes, announced that it has agreed to acquire M/V Santa Cruz(Built in 2005), a 76,440 dwt dry bulk vessel, for $15.75 million.
The vessel was controlled by an unaffiliated third party and has been managed by Eurobulk Ltd., which also happens to be the manager of the majority of the Company’s vessels. The vessel is also expected to be delivered to the Company by the end of April 2022. EuroDry Ltd will also be assuming the existing charter of the vessel at $14,800 per day until July 2022. The acquisition of M/V Santa Cruz will be financed with its funds.
“We are pleased to announce the acquisition of M/V Santa Cruz, a Panamax dry bulk carrier built in the year 2005. This acquisition will help expand our fleet at a time when the market fundamentals are quite supportive within the context of geopolitical uncertainties. Demand is expected to remain strong, supported by the increasing demand for energy and infrastructure projects that have been announced by various Governments, while fleet growth is expected to be limited, as indicated by the historically low levels of the order book. At present market rates, we expect that M/V Santa Cruz will make an important contribution to our EBITDA and net income”, said Aristides Pittas, Chairman and Chief Executive Officer of EuroDry.
EuroDry Ltd., which operates in the dry cargo, dry bulk shipping market, was formed on January 8, 2018, under the laws of the Republic of the Marshall Islands to help consolidate the dry bulk fleet of Euroseas Ltd. into a separate listed public company. The Company was spun-off from Euroseas Ltd on May 30, 2018, and it trades on the NASDAQ Capital Market under the ticker EDRY.
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