C3is Inc, a prominent ship-owning company specializing in dry bulk and crude oil tanker seaborne transportation services, announced today the pricing of a firm commitment underwritten public offering. The company anticipates gross proceeds of approximately $7.0 million from the offering, before deducting underwriting discounts and other estimated expenses.
Following the announcement, the stock of C3is Inc witnessed a significant decline. Having closed Thursday’s session at $0.37, the stock commenced trading on Friday morning at $0.12. Notably, the offering was upsized from the initial $6.0 million.
At the time of this publication, C3is Inc stock (CISS) has witnessed a decline.
C3is Inc
Current Price: $0.13
Change : -0.25
Change (%): (-66.48%)
Volume: 33.5M
Source: Tomorrow Events Market Data
The public offering of C3is comprises 28,000,000 Common Units or Pre-funded Units. Each unit consists of either one share of common stock (“Common Share”) or Pre-Funded Warrant, in addition to one-half of a Class B-1 Warrant and one Class B-2 Warrant. The Class B-1 Warrants have an exercise price of $0.375 per share, while the Class B-2 Warrants have an exercise price of $0.425 per share. Both warrants will expire on the five-year anniversary of the original issuance date.
The purchase price for each Common Unit is $0.25, while the purchase price for each Pre-Funded Unit is $0.24 (equal to the public offering price per Common Unit minus $0.01). The Pre-Funded Warrants are immediately exercisable and may be exercised until all are exercised in full.
C3is Inc plans to utilize the net proceeds from the offering for various purposes, including capital expenditures. This may involve payment towards the $38.7 million remaining purchase price for the Aframax tanker acquired in July 2023, acquisitions of additional vessels (yet to be identified), working capital, or other general corporate purposes. The closing of the offering is expected to take place on January 23, 2024, subject to customary closing conditions.
Additionally, the company has granted Aegis Capital Corp. a 45-day option to purchase up to 15% of the number of Common Shares and/or Pre-Funded Warrants sold in the offering. This option also includes additional Warrants representing up to 15% of the Warrants sold in the offering, exclusively to cover over-allotments.
Aegis Capital Corp. is acting as the sole book-running manager for the offering, with Goodwin Procter LLP serving as U.S. counsel to C3is Inc, and Sichenzia Ross Ference Carmel LLP serving as counsel to Aegis Capital Corp., the sole book-running manager. Investors and industry observers will closely monitor the developments leading up to the closing of the offering, as C3is Inc strategically positions itself for future growth and investment opportunities in the seaborne transportation sector.
