Benzinga | Jan 19, 2022 04:17PM EST

EuroDry To Acquire M/V Molyvos Luck Vessel For $21.2M

* EuroDry Ltd (NASDAQ:EDRY) has agreed to acquire M/V Molyvos Luck, a drybulk vessel built-in 2014, for $21.2 million.

* The vessel was majority-owned by an unaffiliated third party and managed by Eurobulk Ltd., also the manager of the majority of the company's vessels.

* The company expects the vessel delivery around this month-end and will assume the existing charter of the vessel at $13,250/day until April 2022.

* The company plans to initially finance the acquisition with its own funds and seek a bank loan once the purchase is completed.

* The company held cash and equivalents of $22.6 million as of September 30, 2021.

* "At current market rates, we expect that M/V Molyvos Luck will make a significant contribution to our net income and EBITDA," said Aristides Pittas, Chairman and CEO of EuroDry.

* Price Action: EDRY shares closed higher by 4.87% at $19.60 on Wednesday.