Pangaea completes deal that adds 15 handy-sizes to its fleet

Pangaea CEO Mark Filanowski: “This transformational transaction is an exciting new growth chapter for Pangaea.”

Newport, R.I.-based Pangaea Logistics Solutions Ltd. [Nasdaq: PANL] reports that it has completed its previously announced combination of its existing dry-bulk fleet with 15 handy-size dry bulk vessels owned by privately-held Strategic Shipping Inc., whose operations are conducted under the name of M.T. Maritime.

“We are starting the new year with an expanded complement of vessels that provide new offerings to existing and new clients of Pangaea and Strategic, along with a larger core of experienced people ready to address customer supply chain challenges with creativity and efficiency,” said Pangaea CEO Mark Filanowski. “Our owned fleet of 41 ships in the range of handy to post-Panamax sizes, matched with our growing terminal operations, provide our customers with new alternatives for their dry bulk logistics requirements. As we expand our fleet, we will also grow our cargo base and our operating fleet of chartered-in ships helping to maximize efficiencies through position arbitrage against our cargo book. This transformational transaction is an exciting new growth chapter for Pangaea.”

Shareholder approval of the transaction was obtained at a special meeting of shareholders on December 30, 2024, resulting in its closing of t on the same day.

Under the terms of the transaction, Pangaea issued 18,059,342 shares of its common stock to SSI equal to approximately 27.6% of the company’s outstanding common stock immediately following the consummation of the transaction, in exchange for the fifteen handy-size vessels. SSI’s vessels valued at approximately $271 million at the closing, inclusive of $100 million of vessel related financing agreements assumed by Pangaea, resulting in a net asset value of $171 million.