SCHEDULE 13D/A: Major Shareholder Increases Stake in OceanPal Inc. to 14.99% Following Preferred Stock Conversion Price Adjustment

Anastasios Margaronis and Anamar Investments Inc. have increased their beneficial ownership in OceanPal Inc. to 14.99% of common stock, driven by a change in the Series D Preferred Stock's conversion price.

Summary

• Anastasios Margaronis and Anamar Investments Inc. (the "Reporting Persons") have filed Amendment No. 17 to their Schedule 13D, reporting an increase in their beneficial ownership of OceanPal Inc. common stock.
• The Reporting Persons now beneficially own 2,623,059 shares of OceanPal Inc. common stock, representing 14.99% of the total issued and outstanding shares.
• This increase is attributed to a change in the conversion price of the Series D Preferred Stock held by the Reporting Persons.
• The Series D Preferred Stock was initially acquired through distributions from Diana Shipping Inc. and a subsequent purchase from Abra Marinvest Inc.
• A Preferred Stock Conversion Agreement dated October 15, 2024, limits the Reporting Persons' beneficial ownership to a maximum of 14.99% of the common stock upon conversion.
• The Reporting Persons state their acquisition is for investment purposes and they may engage with management and the board to increase shareholder value.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. An increase in a significant shareholder's stake, coupled with their stated intent to engage with management to increase shareholder value, suggests a vote of confidence and potential for future strategic actions. However, the pre-existing ownership cap limits the immediate impact of this specific conversion.

Positives

• The increased stake by a significant shareholder (Anastasios Margaronis and Anamar Investments Inc.) could signal confidence in the company's future.
• The Reporting Persons are actively engaging with management and the board to explore alternatives to increase shareholder value, which could lead to positive strategic initiatives.

Negatives

• The 14.99% conversion cap, while a pre-existing agreement, limits the immediate upside of the preferred stock conversion for the Reporting Persons, potentially indicating a strategic decision to avoid triggering certain ownership thresholds or regulatory scrutiny.

Future Outlook

The Reporting Persons explicitly state their intention to potentially acquire additional shares or dispose of existing ones based on ongoing investment evaluation and market conditions. They also reserve the right to act in concert with other shareholders and are in contact with the Issuer's management and Board of Directors to discuss alternatives to increase shareholder value.

Management Comments

• "The Reporting Persons acquired the Shares... solely for investment purposes."
• "The Reporting Persons, at any time and from time to time, may acquire additional Shares... or dispose of any or all of the Shares they own depending upon an ongoing evaluation of their investment in the Shares, prevailing market conditions, other investment opportunities, other investment considerations and/or other factors."
• "The Reporting Persons further reserve the right to act in concert with any other shareholders of the Issuer, or other persons, for a common purpose should they determine to do so, and/or to recommend courses of action to the Issuer's management, the Issuer's Board of Directors, the Issuer's shareholders and others."
• "In addition, the Reporting Persons are in contact with members of the Issuer's management, the members of the Issuer's Board of Directors, other significant shareholders and others regarding alternatives that the Issuer could employ to increase shareholder value."

Industry Context

This filing indicates a significant shareholder increasing their stake in a shipping company (OceanPal Inc.), which is common in the maritime industry where large individual or family-controlled entities often hold substantial positions. The mention of acquiring vessels (m/v Baltimore and m/v Melia) from Diana Shipping Inc. highlights inter-company transactions within the broader shipping sector, often involving related parties or strategic asset transfers.

Comparison to Industry Standards

• N/A. This Schedule 13D filing primarily concerns beneficial ownership and does not provide operational or financial performance data that would allow for a direct comparison to industry-specific benchmarks or competitor results. It focuses on a change in a specific shareholder's stake rather than the company's overall performance against peers like Star Bulk Carriers Corp. or Golden Ocean Group Limited.

Corporate Governance

Related Party Transactions

• The Reporting Persons, as common shareholders of Diana Shipping Inc., elected to receive their distribution in shares of Series D Preferred Stock, which originated from OceanPal Inc.'s purchase of m/v Baltimore and m/v Melia from Diana Shipping Inc.

Stakeholder Impact

• Shareholders: The increased stake by a significant investor and their stated intent to enhance shareholder value could be positive. The 14.99% ownership cap might limit potential for a full takeover but provides a stable large shareholder.
• Management/Board: The Reporting Persons' stated contact and intent to recommend courses of action suggest potential for increased shareholder influence on strategic decisions.

Next Steps

• Reporting Persons may acquire additional shares or dispose of existing ones.
• Reporting Persons may act in concert with other shareholders.
• Reporting Persons will continue to engage with OceanPal Inc.'s management and Board of Directors to discuss strategies for increasing shareholder value.

Key Dates

Recommendation

Keywords

OceanPal Inc., OP, Schedule 13D, Beneficial Ownership, Anastasios Margaronis, Anamar Investments Inc., Series D Preferred Stock, Common Stock, SEC Filing, Shareholder Activism, Investment, Corporate Governance, Diana Shipping Inc.