Panagiotidis to buy $19.5m worth of shares in Castor tanker spinoff Toro

Castor Maritime’s Nasdaq-listed tanker spinoff Toro is selling 8.5m shares for $19.46m to Pani Corp, a company controlled by its chairman and CEO Petros Panagiotidis.

The net proceeds will be used by the owner of eight tankers for vessel acquisitions, including fleet renewal, and for other capital expenditures, working capital, and general corporate purposes, or a combination thereof, the Cyprus-based firm said.

The purchase price equals the market price per Toro’s common share at the close of trading on April 13, 2023. The shares, which climbed nearly 24% on Monday, will be issued in a private placement and the transaction has been approved by Toro’s board.

Following the completion of the transaction, Toro will have nearly 18m common shares outstanding. Panagiotidis, will, directly or indirectly, hold 47.4% of the shares in addition to his existing holdings of 100% of Toro’s series B preferred shares and, accordingly, will control 99.8% of the outstanding voting rights of Toro.

Under the deal, Panagiotidis has to keep the purchased shares for 180 days after the closing date of the subscription agreement, expected to close on or about April 19, 2023.