NEW YORK, July 14, 2011 (GLOBE NEWSWIRE) -- Rand Logistics, Inc. (Nasdaq:RLOG) ("Rand") today announced that it has signed a binding asset purchase agreement, whereby its designated subsidiary, Lower Lakes Towing Ltd. ("Lower Lakes") will acquire the Maritime Trader, a Canadian flagged dry bulk carrier, subject only to final approval by the Federal Court of Canada. Concurrent with final court approval, Lower Lakes will enter into a long term contract of affreightment for substantially all of the sailing days related to the acquired vessel. It is anticipated that the closing of the transaction will occur prior to July 31, 2011. The acquisition, which increases the Company's fleet size to fifteen dry bulk carriers, including twelve self unloading and three bulk carriers, is projected to be accretive to Rand's free cash flow per share for the year ending March 31, 2012.
Scott Bravener, President of Lower Lakes commented, "We are pleased to announce the addition of the Maritime Trader to our fleet. It is a vessel that we are very familiar with, having marketed it for the last four years on behalf of an unaffiliated third party on terms that generated no profit for Rand. I am also pleased that we will enter into a long term contract of affreightment to meet the growth needs of an important existing customer, further solidifying this relationship."
Forward-Looking Statements
This press release contains forward-looking statements. For all forward-looking statements, we claim the protection of the Safe Harbor for Forward-Looking Statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Future events and actual results, affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, the effect of the economic downturn in our markets; the weather conditions on the Great Lakes; and our ability to maintain and replace our vessels as they age.
For a more detailed description of these uncertainties and other factors, please see the "Risk Factors" section in Rand's Annual Report on Form 10-K as filed with the Securities and Exchange Commission on June 29, 2011.
About Rand Logistics
Rand Logistics, Inc. is a leading provider of bulk freight shipping services throughout the Great Lakes region. Through its subsidiaries, the Company operates a fleet of twelve self-unloading bulk carriers including three integrated tug/barge units and two conventional bulk carriers. The Company is the only carrier able to offer significant domestic port-to-port services in both Canada and the U.S. on the Great Lakes. The Company's vessels operate under the U.S. Jones Act – which reserves domestic waterborne commerce to vessels that are U.S. owned, built and crewed, – and the Canada Marine Act – which requires only Canadian registered and crewed ships to operate between Canadian ports.