C3IS

Kurta Law is investigating broker recommendations of C3is Inc (NASDQ:CISS). These investments were extremely high risk and investors who suffered losses should consider speaking with a securities attorney. Overly risky investments violate securities rules and regulations and could be grounds for FINRA arbitration. FINRA arbitration is the alternative to suing in civil court that brokerage firms typically require investors to use.  

If you would like to speak with a securities attorney, call (877) 600-0098 or email info@kurtalawfirm.com.  

The Offering  

The risks associated with investing in C3is Inc. appear in the prospectus, which is dated January 19, 2024. The prospectus is the document that investors file in order to register the offering with the SEC. The offering was for 28,000,000 units, with each unit comprising common shares and warrants to purchase common shares. Warrants give investors the right to purchase shares for a certain price at some specified point in the future.  

About C3IS  

According to the prospectus, C3is Inc was incorporated in the Republic of the Marshall Islands on July 25, 2022. It reports that it is a holding company for two subsidiaries. The prospectus states that C3is Inc. provides international seaborne transportation services to dry bulk producers and traders. C3is Inc. purports to own a fleet of two dry bulk carriers that transport iron ore, coal, and grains.  

Risks of Investing in C3is Inc.  

The following are risks that are clearly outlined in the C3is Inc. prospectus. Any broker who recommended these investments knew or should have known about the following risks:  

Marshall Islands 

Because the company is incorporated in the Marshall Islands, you may struggle to protect your interests as a shareholder.  

Emerging Growth Company 

As an emerging growth company, C3is Inc. can present more limited financial data. Limited information means more risk for investors.  

Supply and Demand 

Demand for the dry goods that C3is Inc. provides can be cyclical, making it difficult to find profitable charters.  

Small Size of the C3is Inc. Fleet 

C3is Inc.’s fleet only consists of two vessels. If either of these vessels suffers any damage, it will greatly impair the company’s ability to turn a profit.  

When the vessels expire, replacing them will come at a significant cost. As the vessels age, they will have to compete with younger, more technologically advanced ships.  

Covid-19 Threats to Business 

Covid-19 could impact the way the company does business.  

Natural Disasters and Weather  

These types of setbacks are impossible to predict and could greatly impede their ability to make money.  

International Conflicts  

Conflicts like the war in Ukraine can affect the demand for dry bulk goods.  

Developments in International Trade  

Tariffs and other taxes can affect how C3is Inc. does business.  

Aegis Capital Corp. Underwriting  

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm. 

Kurta Law Can Help  

Kurta Law offers free case evaluations. Our team of securities attorneys regularly handles cases of alleged unsuitable investment recommendations. Securities fraud and FINRA arbitration are niche areas of law, and our investment fraud lawyers are experts. Call (877) 600-0098 or email info@kurtalawfirm.com.