Company: CMDB
Filing Date: 2025-03-31
Form Type: 20FR12B
Source: 0001140361-25-011425
Chunk: 66

Company: Costamare Bulkers Holdings Ltd
Filing Date: 2025-03-31
Form: 20FR12B
Chunk 66
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 Costamare Inc. has derived its revenues from the operation of containership vessels, and expanded into the dry bulk shipping sector in June 2021. Our dry bulk operating platform commenced operations in the fourth quarter of 2022. As such, we are relatively new to the dry bulk sector. Entry into a new line of business comes with many risks, such as unforeseen expenses, difficulties in establishing operational policies and business strategy, less familiarity with certain operational challenges in the sector, and other unknown obstacles. These risks, combined with our limited operating history and track record, may make it difficult for shareholders to assess our business and future prospects. Additionally, our lack of operating history and changes in our business make it difficult to accurately compare our prior results and performance and to predict our future financial viability. For example, our dry bulk operating platform commenced operations in the fourth quarter of 2022, and thus, was not in operation during most of the year ended December 31, 2022. The lack of extended financial and operational data make it more difficult to accurately evaluate our business. Comparisons of our prior results and performance and any predictions about our future success or viability may not be as accurate as they could be if we had a longer operating history. The derivative contracts we may enter into to establish market positions and hedge our exposure to fluctuations in interest rates, foreign currencies, bunker prices, carbon emission allowances prices and freight rates can result in reductions in our shareholders’ equity, our cash position and our income. There can be no assurance that these hedges will be effective as they depend on the credit worthiness of our counterparties. We may also incur losses on these derivative positions, which may have a material adverse effect on our results of operations and financial position. We may enter into interest rate swaps, interest rate caps and cross currency swaps generally for purposes of managing our exposure to fluctuations in interest rates applicable to indebtedness under our credit facilities that are advanced at floating rates based on the Secured Overnight Financing Rate (“SOFR”) and to manage our exposure to fluctuations in foreign currencies. The amount of interest we may be required to pay may end up being higher than the amount we would have to pay had we not entered in such derivative contracts, depending on market circumstances. We have entered into forward freight agreements to establish market positions and to hedge our exposure to dry bulk freight rates. We also entered into bunker swaps to establish market positions and hedge our exposure to bunker prices, and we enter into carbon emission allowances futures (EUAs) to hedge our exposure to