Rand Logistics buys U.S.-flag bulker and reflags it Canadian

Great Lakes bulker operator Rand Logistics, Inc. (Nasdaq:RLOG) says that its  Canadian operating subsidiary Lower Lakes Towing Ltd., Rand’s Canadian operating subsidiary, completed the previously announced acquisition of a U.S. flagged bulk carrier on October 14, 2011, pursuant to the terms of an Asset Purchase Agreement, dated as of September 21, 2011, utilizing proceeds from Rand’s public offering of its common stock in September 2011. Subsequent to closing, the vessel was reflagged Canadian.

An SEC filing by the company reports that the vessel was purchased from U.S. United Ocean Service, LLC for $5,250,000, plus the value of the remaining bunkers and unused lubricating oils onboard the vessel at the closing of the acquisition.

Scott Bravener, President of Lower Lakes, commented, “We are very pleased to announce the addition of the bulk carrier to our fleet, as it will allow us to meet the growing needs of our customers. The acquisition of this vessel expands our fleet at a price well below replacement cost, will improve the profitability of our existing fleet by better aligning our assets to the trade patterns that they are best suited for and will provide for greater flexibility in the scheduling of our vessels. Subsequent to closing, we entered into a long term time charter which we anticipate will utilize all of the vessel’s annual sailing days. We are expecting that the vessel will enter into service during the second half of December and will be fully operational for our 2012 sailing season. The continued growth of our company enhances our competitive position as a leading provider of bulk freight shipping services throughout the Great Lakes region and illustrates our long-term commitment to our customers, employees and shareholders.”

December 20, 2011