That cash is already spoken for….
Our liquidity needs, as of December 31, 2023, primarily relate to the funding of the remaining purchase price of $38.7 million for the Aframax tanker we agreed to acquire in July 2023 from a related party which is payable by July 14, 2024, expenses for operating our vessels, any vessel improvements that may be required and general and administrative expenses.
As of December 31, 2023, we had no outstanding bank debt and a financial liability of $37.1 million relating to the remaining purchase price for our Aframax tanker, which bears interest at an implicit rate of 8.1% per annum and is payable in July 2024 in the total amount of $38.7 million which is inclusive of interest. We may incur indebtedness in the future to finance the growth of our fleet. In April 2024, we agreed to acquire a third handysize drybulk carrier for a purchase price of $16.19 million, of which 10% was payable within April 2024 and the remainder of the purchase price is payable no later than April 10, 2025.
We expect to finance the $38.7 million remaining acquisition consideration for our Aframax tanker and the $14.57 million remaining acquisition consideration for the handysize drybulk carrier with cash on hand, cashflow from operations, possible equity offerings and the incurrence of senior secured bank debt, if needed, within the twelve-month period following the respective vessel’s delivery to the Company. We may also incur indebtedness secured by the two drybulk vessels in our initial fleet. In the event the debt and equity issuances are not sufficient, we may consider selling one of our unencumbered vessels.
