TOP SHIPS Inc (NASDAQ:TOPS) has bought the due shares of PCH77 Shipping Company Ltd, a Marshall Islands firm that owns a fresh building deal for M/T Eco California, a 50,000 dwt MR chemical/product tanker under construction process at Hyundai Mipo Dockyard Co., Limited in Korea from a firm affiliated with the Company’s CEO and Chairman, Evangelos Pistiolis. The firm compensated $3.6 million for the outstanding equities and the vessel is planned for delivery in January 2019.
Upon its delivery, this vessel will be engaged under a time charter with a key oil major for a company duration of 2-years with a charterer’s stance to extend for another additional year. The charter rate comprises of a fixed amount a day and a 50% profit stake for earned rates over the fixed sum. Top Ships projects a total gross revenue backlog linked with the time charter of $15.1 million, counting the optional period but discounting any upside from the profit share deal.
The aforementioned deal was passed by a special committee of the firm’s board of directors, or the established Transaction Committee. In the course of its discussions, the Transaction Committee engaged and obtained a fairness view from an independent financial expert.
Evangelos Pistiolis, the CEO and President of Top Ships, expressed that as of today, the aggregate gross revenue accumulation for the fixed charter period of the firm’s operating fleet, discounting any gains from profit share deals, stands at nearly $110 million and when including the 50% of their joint venture vessels, it rises to around $126 million, with cash flow visibility coming into 2021. Their business plan focus remains on growing their fleet.
In the last trading session, the stock price of Top Ships gained more than 1% to close the day at $0.4305. The gains came at a share volume of 26.68 million compared to average share volume of 19.76 million.