C3is Inc. (Nasdaq:CISS) (the “Company”) announced that it has entered into an agreement to acquire for $43 million the M/T Stealth Berana, an Aframax oil tanker, built at Samsung shipyard, South Korea in 2010, with a cargo carrying capacity of approximately 115,800 dwt, from Imperial Petroleum Inc.
Payment of 10% of the purchase price has been effected, with the remaining balance due within one year following the vessel’s delivery, which took place on the 14th of July . The vessel is currently trading in the spot market.
The transaction with Imperial Petroleum Inc., which is an affiliated company, was approved by the Company’s audit committee comprising of independent directors.
Net Asset Value (“NAV”)
As of July 14, 2023, the Company’s management estimated C3is Inc’s Net Asset Value (“NAV”) to be $26.66 million, which represents approximately a 370% premium over its current market capitalization.
This translates into a NAV of $3.36 per common share currently outstanding (including exercise of all pre-funded warrants), $2.49 per common share on a diluted basis (further assuming exercise of all outstanding Class A warrants for cash) and $1.73 per common share on a fully diluted basis (further assuming conversion of $15 million Series A Convertible Preferred Shares).
The estimated NAV represents a snapshot in time as of July 14, 2023; the figure will likely change and does not represent the amount a stockholder would receive now or in the future for his or her shares of the Company’s common stock. This NAV is based on recent charter-free vessel values and cash as of July 14, 2023, and does give effect to the acquisition of the Aframax oil tanker.
CFO, Dr. Diamantis Andriotis commented:
"We are pleased to announce the acquisition of the M/T Stealth Berana as we believe it will significantly enhance the Company’s cashflow and earnings and assist in addressing our low price to NAV valuation. We expect to finance the remaining acquisition consideration with cash on hand, cashflow from operations and possibly the incurrence of senior secured bank debt within the twelve-month period following the vessel’s delivery to us, as agreed with the seller."
