Sphinx Investment Corp. made a tender offer to acquire Performance Shipping Inc. (NasdaqCM:PSHG) for $32.9 million on October 11, 2023. The offer price is $3 cash per share. The transaction is funded from available cash on hand. The Board of Performance Shipping appointed a Special Committee of independent directors of the Board to approve the offer. Following the successful consummation of the Offer (assuming it is consummated), the Offeror, Maryport and Mr. George Economou will have acquired beneficial ownership of a majority of the issued and outstanding Shares on a fully-diluted basis and will have designated a majority of the Board, and may be deemed to control the Company. The transaction is subject to Minimum Tender Condition. The Offer is not conditioned upon the Offeror obtaining financing and the Offer is not conditioned upon the Sphinx Nominee being elected to the Board. The Offer is not conditioned upon the passage of any other shareholder proposal expected to be made by the Offeror at the 2024 Shareholder Meeting, including, without limitation, the Declassification Proposal or any Vote of No-Confidence Proposal. The Offer and such shareholder proposals are independent of each other. The Offer and the nomination of the Sphinx Nominee for election to the Board are independent of each other. The offer period will expire on November 8, 2023, until further extended. As of October 30, 2023, Sphinx Investment has extended the expiration date i.e., the Offer has been extended to 11:59 p.m., New York City time, on November 15, 2023, unless the Offer is extended, to tender your Shares in the Offer.

Robert B. Greco of Richards, Layton & Finger, P.A. and Will Vogel of Watson, Farley & Williams acted as legal counsel and Newbridge Securities Corporation acted as independent financial advisor to Performance Shipping. The Company has agreed to pay a fee of $30,000 to Newbridge for services. The Offeror has retained Innisfree M&A Incorporated to be the Information Agent. Continental Stock Transfer & Trust Company acted as tender offer agent to Sphinx.