| Diana Shipping Inc. |
| (Name of Issuer) |
| Common Stock, $0.01 par value per share |
| (Title of Class of Securities) |
| Y2066G104 |
| (CUSIP Number) |
Attn: Mr. Ioannis Zafirakis Pendelis 16, 175 64 Palaio Faliro Athens, Greece + 30-210-9470-100 |
| (Name, Address and Telephone Number of Person Authorized to Receive |
| Notices and Communications) |
| December 14, 2023 |
| (Date of Event Which Requires Filing of this Statement) |
| CUSIP No. | Y2066G104 |
| 1. | NAME OF REPORTING PERSONS | ||
| I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) | |||
| Semiramis Paliou | |||
| 2. | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* | ||
| (a) | [_] | ||
| (b) | [x] | ||
| 3. | SEC USE ONLY | ||
| 4. | SOURCE OF FUNDS | ||
| OO | |||
| 5. | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) | [_] | |
| 6. | CITIZENSHIP OR PLACE OF ORGANIZATION | ||
| Greece | |||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | |||
| 7. | SOLE VOTING POWER | ||
| 0 | |||
| 8. | SHARED VOTING POWER | ||
| 22,928,768 | |||
| 9. | SOLE DISPOSITIVE POWER | ||
| 0 | |||
| 10. | SHARED DISPOSITIVE POWER | ||
| 22,928,768 | |||
| 11. | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||
| 22,928,768 | |||
| 12. | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* | [_] | |
| 13. | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||
| 19.37% | |||
| 14. | TYPE OF REPORTING PERSON | ||
| IN | |||
| CUSIP No. | Y2066G104 |
| 1. | NAME OF REPORTING PERSONS | ||
| I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) | |||
| Tuscany Shipping Corp. | |||
| 2. | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* | ||
| (a) | [_] | ||
| (b) | [x] | ||
| 3. | SEC USE ONLY | ||
| 4. | SOURCE OF FUNDS | ||
| OO | |||
| 5. | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) | [_] | |
| 6. | CITIZENSHIP OR PLACE OF ORGANIZATION | ||
| Republic of the Marshall Islands | |||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | |||
| 7. | SOLE VOTING POWER | ||
| 0 | |||
| 8. | SHARED VOTING POWER | ||
| 17,679,282 | |||
| 9. | SOLE DISPOSITIVE POWER | ||
| 0 | |||
| 10. | SHARED DISPOSITIVE POWER | ||
| 17,679,282 | |||
| 11. | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||
| 17,679,282 | |||
| 12. | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* | [_] | |
| 13. | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||
| 14.94% | |||
| 14. | TYPE OF REPORTING PERSON | ||
| CO | |||
| Item 1. | Security and Issuer. |
| This Amendment No. 3 to Schedule 13D (the “Schedule 13D”) relates to shares of common stock, par value $0.01 per share (the “Shares”), of Diana Shipping Inc. (the “Issuer”). The principal executive office and mailing address of the Issuer is Pendelis 16, 175 64 Palaio Faliro, Athens, Greece. | |
| Item 2. | Identity and Background. |
This Schedule 13D is being filed on behalf of Semiramis Paliou (“Paliou”), a citizen of Greece, and Tuscany Shipping Corp., a Marshall Islands corporation (“Tuscany”). Paliou and Tuscany are collectively referred to as the “Reporting Persons.” Paliou is the owner of all of the issued and outstanding shares of Tuscany, and may be deemed to have beneficial ownership of the Shares beneficially owned by Tuscany. The principal business address for Reporting Persons is Pendelis 16, 175 64 Palaio Faliro, Athens, Greece. The Reporting Persons have not, during the last five years, been (i) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding were not and are not subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violations with respect to such laws. | |
| Item 3. | Source and Amount of Funds or Other Consideration. |
Tuscany acquired Shares from Taracan Investments S.A., a Marshall Islands corporation, which at that time was controlled by Mr. Simeon Palios (“Taracan”) pursuant to the Contribution Agreement dated September 28, 2020, by and between Taracan and Tuscany in a private transaction, resulting in Tuscany directly acquiring all such Shares. Mr. Simeon Palios subsequently transferred all of his interest in Tuscany to Paliou on September 28, 2020. On December 14, 2023, the Issuer distributed warrants to purchase Shares to the holders of record of Shares as of the close of business on December 6, 2023. Each holder received one warrant for every five Shares. Each warrant entitles the holder to purchase, at the holder’s sole and exclusive election, at the exercise price, one Share plus, to the extent, described below, the Bonus Share Fraction. A Bonus Share Fraction entitles a holder to receive an additional 0.5 of a Share for each warrant exercised (the “Bonus Share Fraction”) without payment of any additional exercise price. Unless earlier redeemed, the warrants will expire and cease to be exercisable at 5:00 p.m. New York City time on December 14, 2026. As of the date hereof, the Reporting Persons have not exercised their warrants and therefore do not own any additional Shares. | |
| Item 4. | Purpose of Transaction. |
Paliou, the Chief Executive Officer of the Issuer, may have influence over the corporate activities of the Issuer, including activities which may relate to items described in subparagraphs (a) through (j) of Item 4 of Schedule 13D. The Reporting Persons acquired the Shares, as described herein, solely for investment purposes. The Reporting Persons, at any time and from time to time, may acquire additional Shares, including in connection with the provision of any services or other strategic transactions with the Issuer, 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. |
| Item 5. | Interest in Securities of the Issuer. |
| (a. & b.) As of December 22, 2023, the Issuer had 113,065,725 Shares outstanding. The following persons report beneficial ownership of the following Shares: | |
| Tuscany is the record holder of 17,679,282 Shares, representing 14.94% of the Issuer’s issued and outstanding Shares, which Paliou indirectly may be deemed to beneficially own, as the result of her ability to control the vote and disposition of such entity. 4 Sweet Dreams S.A. (“4 Sweet Dreams”) is the holder of 5,249,486 Shares representing 4.44% of the Issuer’s issued and outstanding Shares, which Paliou indirectly may be deemed to beneficially own, as the result of her ability to control the vote and disposition of such entity. Therefore, Paliou may be deemed to, indirectly, beneficially own 22,928,768 Shares, representing 19.37% of the Issuer’s issued and outstanding shares. | |
| Tuscany has the sole power to vote or direct the vote of 0 shares and has the shared power to vote or direct the vote of 17,679,282 Shares. 4 Sweet Dreams has the sole power to vote or direct the vote of 0 Shares and has the shared power to vote or direct the vote of 5,249,486 Shares. Therefore, Paliou has the sole power to vote or direct the vote of 0 Shares and has the shared power to vote or direct the vote of 22,928,768 Shares. | |
| (c.) Except as otherwise disclosed herein, no transactions in the Shares were effected by the Reporting Person during the past 60 days. | |
| (d.) No other person is known to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, any of the Shares beneficially owned by the Reporting Persons. | |
| (e.) Not applicable. | |
| Item 6. | Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer. |
On January 31, 2019, the Issuer issued 10,675 shares of its newly-designated Series C Preferred Stock, par value $0.01 per share, to Taracan, which have been contributed to Tuscany, as described above. The Series C Preferred Stock will vote with the Shares of the Issuer, and each share of the Series C Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Issuer. Through her beneficial ownership of Shares and shares of Series C Preferred Stock of the Issuer, Paliou will control 26.6% of the vote of any matter submitted to the vote of the stockholders of the Issuer. The Series C Preferred Stock has no dividend or liquidation rights and cannot be transferred without the consent of the Issuer except to the holder's affiliates and immediate family members. The issuance of shares of Series C Preferred Stock was approved by an independent committee of the Board of Directors of the Issuer, which received a fairness opinion from an independent third party that the transaction was fair from a financial point of view to the Issuer. Pursuant to the Contribution Agreement dated as of September 28, 2020 (the “Contribution Agreement”), between Tuscany and Taracan Investments S.A., a Marshall Islands corporation (“Taracan”), Tuscany acquired 14,525,730 Shares and 10,675 shares of Series C Preferred Stock of the Issuer (the “Series C Preferred Stock”) from Taracan, in exchange for 999 shares of common stock of Tuscany, and may be deemed to have beneficial ownership of such Shares and Series C Preferred Stock. The Contribution Agreement was filed as Exhibit B to Amendment No. 1 to Schedule 13D. On June 22, 2021, the Issuer issued 400 shares of its newly-designated Series D Preferred Stock, as amended, par value $0.01 per share, to Tuscany. The Series D Preferred Stock has no dividend or liquidation rights. The Series D Preferred Stock will vote with the Shares of the Issuer, and each share of the Series D Preferred Stock shall entitle the holder thereof to up to 200,000 votes, on all matters submitted to a vote of the stockholders of the Issuer, provided however, that to the extent that the total number of votes one or more holders of Series D Preferred Stock is entitled to vote (including any voting power of such holders derived from Series D Preferred Stock, shares of Common Stock or any other voting security of the Company issued and outstanding as of the date hereof or that may be issued in the future) on any matter submitted to a vote of stockholders of the Company would exceed 36.0% of the total number of votes eligible to be cast on such matter, the total number of votes that holders of Series D Preferred Stock may exercise derived from the Series D Preferred Stock together with Common Shares and any other voting securities of the Company beneficially owned by such holder, shall be reduced to 36% of the total number of votes that may be cast on such matter submitted to a vote of stockholders. | |
| Item 7. | Material to be Filed as Exhibits. |
| Exhibit A* Joint Filing Agreement | |
| Exhibit B* Contribution Agreement dated September 28, 2020, between Taracan Investments S.A. and Tuscany Shipping Corp. | |
*Previously filed. |
| December 22, 2023 | |||
| (Date) | |||
| Tuscany Shipping Corp. | |||
| By | /s/ Semiramis Paliou | ||
| Semiramis Paliou | |||
| Authorized Representative | |||
| /s/ Semiramis Paliou | |||
| Semiramis Paliou* | |||
