Pyxis announces full redemption of series a convertible preferred stock

Pyxis Tankers, an international shipping company, announced key shareholder and chartering updates.

1. On September 6, 2024, the Company’s Board of Directors approved the redemption of the remaining 303,631 outstanding shares of our 7.75% Series A Cumulative Convertible Preferred Stock with a redemption date of October 20, 2024. Pursuant to the certificate of designation relating to the Preferred Shares, the redemption price is 100% of the liquidation preference of the Preferred Shares of $25.00, plus accrued dividends up to, but not including the Redemption Date. Upon redemption, all outstanding PXSAP shares will be cancelled by the Company and cash dividends in respect of these shares will no longer be payable. After the redemption of the remaining 303,631 Preferred Shares, the right to convert into 1,354,204 common shares will be extinguished. The information contained in this press release does not constitute a notice of redemption by the Company with respect to the Preferred Shares under the Certificate of Designation, which will be distributed in advance to the holders of the Preferred Shares by Vstock Transfer, LLC, the paying agent for the Preferred Shares.
2. During the third quarter through September 10, 2024, the Company has repurchased 65,793 of its common shares in the open market at an aggregate purchase price of $0.3 million. Since the start of the share repurchase program in May, 2023, the Company has acquired a total of 481,164 PXS shares at an average cost of $4.06 per share, including commissions. There is $1.0 million of authorization remaining under the expanded $3.0 million program which expires in May, 2025. The common share repurchase program does not require the Company to purchase a specific number or amount of common shares, and may be suspended or re-instated at any time at the Company’s discretion and without notice. As of September 10, 2024, there were 10,660,831 common shares of the Company outstanding.
3. As of September 10, 2024, 91% of available days in the third quarter, 2024 for our MR product tankers were booked at an average estimated daily time charter equivalent rate (“TCE”) of $31,545 per vessel. As of the same date, 87% of available days in Q3 for our bulkers were booked at an average estimated daily TCE of $17,641.

Pyxis Tankers Fleet (as of September 10, 2024)

1) These tables present gross rates in U.S.$ and do not reflect any commissions payable.
2) “Pyxis Theta” is fixed on a time charter for a minimum of 11 maximum of 15 months, at $29,000 per day.
3) “Pyxis Karteria” was fixed on a time charter for a minimum of 6 maximum of 9 months, at $34,500 per day.
4) “Konkar Asteri” was fixed on time charter for 90 – 105 days, at $16,250 per day, plus scrubber premium of $168,828.
5) “Konkar Venture” was fixed on time charter for 25 – 30 days, at $9,100 per day.

Mr. Eddie Valentis, Chairman and Chief Executive Officer of the Company, commented:

“Since the start of our equity repurchase program 15 months ago, we have continued to generate significant value to our shareholders, including the acquisition of 481,164 common shares. Upon our redemption of all of the outstanding Preferred Shares this year, we will eliminate the monthly cash dividend payments, but more importantly further reduce potential dilution on the basis of earnings and net asset value per share and improve share liquidity. Following the Preferred Shares redemption date of October 20, 2024, but excluding any additional common share repurchases in the interim, we expect there will be 10,660,831 fully-diluted common shares outstanding.

As shown by our updated bookings for the third quarter of 2024, market conditions remain healthy for both the product tanker and dry bulk sectors, despite some seasonal softness. Five of our modern mid-sized vessels operate under short-term time charters and our youngest eco-efficient tanker, the Pyxis Lamda, is employed in the spot market. We will continue to utilize our diversified chartering strategy.”