Castor Maritime (CTRM) Continues to Slump: Any Chance of Rebound?

Shipping companies have been in sharp focus in the markets in recent times owing to the events in the Suez Canal last week and one of the stocks to have been in focus is that of Castor Maritime Inc (NASDAQ: CTRM).

Although Castor Maritime is not a major operator, it enjoyed the backing of investors who inhabit social media platforms and pump up the stocks of different companies. On Monday, the stock dived by as much as 11% after the company made an important announcement.

Yesterday, the company announced that it signed a securities purchase agreement with a range of institutional investors with regards to the sale of as many as 192.3 million shares of its common stock. Additionally, the company is also going to offer the same number of common share warrants that would allow the holders to pick up the company’s shares at $0.65 apiece. It is a significant announcement, but it got a thumbs down from the market.

Michael Rowels

Weekend Contributor. Writing for business and finance publishers has become his passion over the last decades after he completed a master's degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.

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