ATHENS - C3is Inc. (NASDAQ:CISS), a provider of seaborne transportation services, has announced an agreement to purchase the Bulk Carrier Eco Spitfire from Brave Maritime for $16.19 million. The Eco Spitfire, built in 2012 and registered in the Marshall Islands, boasts a cargo capacity of approximately 33,664 deadweight tonnes (dwt).
The initial payment, representing 10% of the purchase price, is scheduled within April 2024, with the remaining amount to be paid by April 10, 2025. The vessel is currently under a time charter that will conclude at the start of May 2024.
C3is Inc.'s audit committee, consisting of independent directors, has approved the transaction with Brave Maritime Inc., which is an affiliated company.
Following the acquisition, C3is's fleet will expand to include three Handysize Bulk Carriers with a combined capacity of 97,664 dwt, in addition to an Aframax oil tanker of 115,800 dwt. This will bring the company's total fleet capacity to 213,464 dwt.
The company's common shares are traded on the Nasdaq Capital Market under the ticker CISS.
The information in this article is based on a press release statement from C3is Inc.
InvestingPro Insights
C3is Inc. (NASDAQ:CISS) has recently made headlines with its acquisition of the Bulk Carrier Eco Spitfire, highlighting the company’s strategic fleet expansion. As investors consider the implications of this move, a glimpse into the company's financial data and market performance offers valuable context.
An impressive aspect of C3is Inc. is its financial health, as indicated by the fact that it holds more cash than debt on its balance sheet. This positions the company favorably for making strategic investments, such as the recent vessel acquisition, and for weathering potential market fluctuations. Additionally, C3is Inc. boasts a robust gross profit margin of 73.45% for the last twelve months as of Q4 2023, a testament to its efficient operations and cost management.
From a valuation standpoint, C3is Inc. is trading at a low Price / Book multiple of 0.13 as of Q4 2023, which could suggest that the stock is undervalued relative to the company's assets. This is coupled with a strong free cash flow yield, as implied by the company's valuation metrics, indicating potential for shareholder value creation.
Investors should note, however, that the stock has experienced high price volatility and has seen a significant decline over the past three to six months, with a 1 Month Price Total Return of -49.67% and a 3 Month Price Total Return of -89.99% as of early 2024. Despite this recent performance, C3is Inc. remains profitable over the last twelve months, which may offer some reassurance about the company's fundamental strength.
For those looking to delve deeper into the company's prospects, there are additional InvestingPro Tips available, including insights on short-term obligations, stock performance over the last month, and dividend policies. Access more tips at InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 11 more tips listed on InvestingPro, investors can gain a comprehensive understanding of C3is Inc.'s financial and market position.
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