Diana Shipping announced that it has signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to sell one of its dry bulk vessels, the m/v Melia, to OceanPal Inc., a related party.

The aggregate sale price of the vessel is US$14.0 million. Of the sale price, US$4.0 million was paid upon signing of the Memorandum of Agreement and the remaining amount will be paid upon the delivery of the vessel in the form of shares of the OceanPal Inc.’s Series D Preferred Stock, the terms of which are set forth in the statement of designation of the Series D Preferred Stock.

The aggregate sale price was agreed upon based on the average of two independent shipbroker vessel valuations, taking into account the share-based component of the consideration.

The m/v Melia is a 2005-built Panamax dry bulk vessel with a carrying capacity of 76,225 dwt. Delivery to the buyer is expected to occur by the end of February 2023. The sale and purchase of the vessel was made pursuant to OceanPal Inc.’s exercise of a right of first refusal granted by the Company on six identified vessels (including the m/v Melia) based on an agreement dated November 8, 2021. The sale of the m/v Melia to OceanPal Inc. was approved by a committee of independent members of the Company’s Board of Directors.