OceanPal raises $18m from market offering

DIANA Shipping spinoff OceanPal has raised an estimated $18m in gross proceeds from an upsized public offering.

The Athens-based owner said it had priced the offering of nearly 11m units at a price of $1.64 per unit.

The company had originally eyed selling about 9.3m shares at an assumed offering price of $1.61 per unit.

Each unit consisted of one OceanPal common share and a warrant to purchase another share within the next three years.

The initial exercise price has been set at 225% of the public offering price but is also subject to resetting at specific dates, as well as a floor price.

Last month, OceanPal sold its oldest vessel, a 2004-built panamax dry bulk carrier, leaving it with three ships: two 2005-built panamax bulkers and a 2009-built medium-range-two tanker.

According to the company’s prospectus, net proceeds from the fundraiser may be used for working capital needs and fleet expansion, among other purposes.

The Robert Perri-led owner began this year with a five-ship fleet that also included a 20-year-old capesize, that was sold in February.

Maxim Group was engaged as sole book-running manager for the offering.

OceanPal’s share price dropped sharply last week, apparently on fears of dilution and an offering price below the stock’s price earlier in the week.