The dry bulk vessels-focused marine shipping company Castor Maritime Inc. (CTRM) has seen its stock price falling -10.35% to $0.350 in the premarket session today and in the early minutes of the regular session, the loss has been declined to -8.71% with price buoying around $0.3565.
Investors were left wondering what to make of the decline as no company-specific news was released.
What is it that is dragging the stock down?
Castor Maritime is a small-cap shipping firm that specializes in the ownership of dry bulk vessels for international shipping transportation. The company’s vessels are employed to transport dry bulk cargo, as well as other commodities including coal, grains, and other materials, along global shipping routes on short- to medium- term charters.
Castor reported last Wednesday that it had entered into a contract to buy a 2006 Japan-built Capesize dry bulk vessel from an unassociated third-party vendor for an appraised value of $17.5 million through a separate wholly-owned subsidiary.
The transaction is estimated to be concluded by the arrival of the vessel sometime at the end of the quarter or the early part of the second quarter of this year after the conclusion of its planned dry boarding and specialized inspection, which also includes the development of a ballast water treatment facility, and is conditional to some conformity with the provisions of completion. The Company’s fleet will consist of seven dry bulk carriers upon completion of this acquisition.
Additionally, Castor Maritime also reported last Friday that it had closed a senior debt facility of $15.3 million with a respected European bank secured by two of its vessels. The funds are scheduled to be disbursed by the end of this week. The company intended to use the net proceeds of the financing to fund its expansion plans.
Both of the news served as a trigger for the stock price of the firm to raise in the final two sessions of the last week, after which it became a victim of profit-taking at the start of the current week.
With its high volatility of more than 17% and given the small price, Castor Maritime Inc (CTRM) stock is likely to be settling at the level prior to those news.