Capital Product Partners L.P. (NASDAQ: CPLP) is a shipping company providing marine transportation services in Greece. Shares skyrocketed 369.43% through early trading on Thursday, March 28, 2019. Over the past three months, Capital Product has seen an average daily volume of 557,940 shares. However, through Thursday morning, already 397,308 shares have traded hands, equating to $4.27 million in dollar volume.
Shares skyrocketed Thursday morning after Capital Product announced it has completed the merger with DSS Holdings L.P. The common stock of Diamond S Shipping, Inc. will be available on the New York Stock Exchange on Thursday, March 28, 2019. In addition, Capital Product announced it has completed its 1-for-7 reverse unit split. Jerry Kalogiratos, Director and CEO of Capital Product, commented, “Importantly, with this transaction completed, we are looking forward to expanding our asset base again with modern vessels employed under medium- to long-term charters with a view to growing our long-term distributable cash flow.” Here is the full press release detailing the completed merger and reverse unit split:
Capital Product Partners L.P. Press Release:
ATHENS, Greece, March 28, 2019 (GLOBE NEWSWIRE) — Capital Product Partners L.P. (CPLP) announced today that the merger of its crude and product tanker business with the business and operations of DSS Holdings L.P. has been completed. Common stock of Diamond S Shipping Inc. (“Diamond S”) is expected to begin regular-way trading on the New York Stock Exchange today, March 28.
CPLP further announced that it has completed its 1-for-7 reverse unit split. CPLP common units will continue to trade on a split-adjusted basis on NASDAQ under the same ticker symbol “CPLP” (CUSIP # Y11082206).
Jerry Kalogiratos, Director and Chief Executive Officer of Capital GP LLC, commented:
“We are pleased to see this strategic transaction completed and wish Diamond S best of luck as a listed entity. This transaction allows CPLP to reshape its business with a modern fleet with remaining charter duration of more than five years, providing CPLP unitholders with increased stability and cash flow visibility. Importantly, with this transaction completed, we are looking forward to expanding our asset base again with modern vessels employed under medium- to long-term charters with a view to growing our long-term distributable cash flow.”
About Capital Product Partners L.P.
Capital Product Partners L.P. (CPLP), a Marshall Islands master limited partnership, is an international owner of container and drybulk vessels. CPLP currently owns 11 vessels, including ten neo panamax container vessels.
The statements in this press release that are not historical facts are forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements involve risks and uncertainties that could cause the stated or forecasted results to be materially different from those anticipated. For a discussion of factors that could materially affect the outcome of forward-looking statements and other risks and uncertainties, see “Risk Factors” in CPLP’s annual report filed with the Securities and Exchange Commission on Form 20-F.
Article By: Andrew Rego