We cannot assure you that we will pay any dividends on our common shares.
Declaration and payment of any dividend is subject to the discretion of our board of directors. Our dividend policy may be changed at any time,
and from time to time, by the board of directors. The timing and amount of dividend payments to holders of our shares will depend on, among other things, shipping market developments and the charter rates we are able to negotiate when we charter our
vessels, our cash earnings, financial condition and cash requirements, and could be affected by a variety of factors, including increased or unanticipated expenses, the loss of a vessel, required capital expenditures, reserves established by the
board of directors, refinancing or repayment of debt, additional borrowings, compliance with the covenants in our financing arrangements, our anticipated future cost of capital, access to financing and equity and debt capital markets, including for
the purposes of refinancing or repaying existing debt, asset valuations, other factors described in our filings with the SEC from time to time and the applicable provisions of Marshall Islands law.
Our ability to make cash distributions is also limited under Marshall Islands law. The MIBCA generally prohibits the payment of dividends
other than from surplus or while we are insolvent or if we would be rendered insolvent upon paying the dividend, or if payment would be contrary to any restrictions contained in our Articles of Incorporation.
The amount of cash we generate from our operations may differ materially from our profit or loss for the period, which will be affected by non-cash items. As a result, we might not pay dividends in certain periods even if we were to record a positive net income in those periods. Conversely, we may pay dividends during periods when we record losses.
In light of the factors described above and elsewhere in our 2023 Annual Report, there can be no assurance that we will pay any dividends
on our common shares.
Capital Maritime and its affiliates may compete with us.
Pursuant to the Umbrella Agreement we entered into on November 13, 2023 with Capital Maritime and CGP LLC (the Umberlla
Agreement), Capital Maritime granted the Corporation certain rights of first refusal over (i) transfers of LNG/C vessels owned by Capital Maritime to third-parties, opportunities to order newbuild LNG/C vessels of which Capital Maritime
becomes aware and employment opportunities for LNG/C vessels of which Capital Maritime becomes aware and(ii) transfers to third parties of two certain liquid CO2 carriers and two certain
ammonia carriers recently ordered by Capital Maritime and employment opportunities for such vessels. Please read Item 4. Information on the PartnershipA. History and Development of the PartnershipDevelopments in 2023 and up to the
filing of this Annual Report in our 2023 Annual Report for further information on the rights of first refusal granted by Capital Maritime pursuant to Umbrella Agreement.
However, Capital Maritime and its controlled affiliates still have significant ability to compete with us, which could harm our business.
Please read Item 7. Major Unitholders and Related Party TransactionsB. Related-Party Transactions in our 2023 Annual Report for further information.
In the Articles of Incorporation we renounced, to the fullest extent permitted by law, any interest or expectancy in, or right to be offered
an opportunity to participate in, any business opportunity which may be a corporate opportunity for Capital Maritime or any of its affiliates (the Identified Persons) and us or our affiliates. We did not renounce our interest in any
corporate opportunity (a) offered to any Identified Person if (i) such opportunity is expressly offered to such Identified Person solely in their capacity as a director or officer of ours, (ii) such Identified Person believed that we
possessed, or would reasonably be expected to be able to possess, the resources necessary to exploit such opportunity and (iii) we or our subsidiaries are directly engaged in such business at the time such opportunity is offered to such
Identified Person or (b) required to be offered to the us pursuant to the Umbrella Agreement.
We currently rely, and expect to continue to rely,
solely on the services of officers provided to us pursuant to our executive services agreement with CGP LLC and who face conflicts in the allocation of their time to our business.
Our board of directors has appointed officers of the Corporation who provide services to us pursuant to an executive services agreement, dated
as of August 26, 2024, by and between the Corporation and CGP LLC (the Executive Services Agreement). These officers are not required to work full-time on our affairs and may also work for Capital Maritime and/or its affiliates. For
example, our Chief Executive Officer, Chief Financial Officer are also executive officers or employees of Capital Maritime, Capital Ship Management and/or their respective affiliates. Capital Maritime and our Managers each conduct substantial
businesses and activities of their own in which we have no economic interest.