MAROUSSI, Greece - Pyxis Tankers (NASDAQ:PXS) Inc. (NASDAQ Cap Mkts: PXS), an international maritime transportation company, has announced the expansion of its fleet with the acquisition of an eco-efficient Kamsarmax dry-bulk vessel, the Konkar Venture, for $30.0 million. The transaction, which includes the issuance of $1.5 million in restricted common shares, is expected to close in June 2024.
The vessel, built in 2015 and equipped with a ballast water treatment system, will be financed through a combination of bank debt, cash, and equity. Pyxis Tankers will hold a 60% majority interest in the joint venture owning the vessel, while entities controlled by the company's Chairman and CEO, Mr. Eddie Valentis, will hold a 40% minority interest.
In addition to the acquisition, the company's board has approved an increase in the common share repurchase program by $1.0 million, extending the authority to May 16, 2025. Since the inception of the repurchase program in May 2023, Pyxis Tankers has acquired approximately 9% of its public common shares not owned by insiders.
Furthermore, Pyxis Tankers has initiated the redemption of 100,000 shares of its Series A Cumulative Convertible Preferred Stock, with a redemption date set for June 20, 2024. This action will reduce the number of outstanding preferred shares and is expected to decrease the dilution of earnings and net asset value per share, as well as improve share liquidity.
Mr. Valentis expressed confidence in the strategic move, noting the appreciation of secondhand values for modern eco-efficient product tankers and the company's focus on enhancing shareholder value through balance sheet improvement and selective fleet expansion.
The information provided in this article is based on a press release statement from Pyxis Tankers Inc .
InvestingPro Insights
As Pyxis Tankers Inc. (NASDAQ: PXS) gears up for the expansion of its fleet with the strategic acquisition of the eco-efficient Kamsarmax dry-bulk vessel, the Konkar Venture, investors are closely monitoring the company's financial health and stock performance. According to the latest data from InvestingPro, Pyxis Tankers boasts an impressive gross profit margin of 59.61% for the last twelve months as of Q4 2023. This high margin showcases the company's ability to manage its cost of goods sold effectively and indicates a strong potential for profitability.
InvestingPro Tips highlight that Pyxis Tankers is trading at a low earnings multiple, with a P/E Ratio (Adjusted) of 3.77 as of Q4 2023. This could suggest that the stock might be undervalued compared to its earnings potential, making it an attractive pick for value investors. Furthermore, the company's liquid assets exceed its short-term obligations, indicating a solid liquidity position which is crucial for the company's operational flexibility and financial stability.
On the performance front, Pyxis Tankers has experienced a large price uptick over the last six months, with a 31.81% total return, reflecting strong market confidence. This aligns with the company's share repurchase program and the redemption of preferred shares, which are likely to further enhance shareholder value.
For investors seeking more in-depth analysis, InvestingPro offers additional insights with tips such as high shareholder yield and the company operating with a moderate level of debt. These tips, along with others, can be found on InvestingPro's platform, providing a comprehensive outlook on Pyxis Tankers' financial and stock performance. Interested readers can unlock the full spectrum of InvestingPro Tips by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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