Toro Corp. (NASDAQ: TORO), an energy transportation services company, has announced plans to spin off its liquefied petroleum gas (LPG) carrier business into a new, independent publicly traded company called AI Okto Corp., to be listed on the Nasdaq Capital Market.

The new entity's initial assets would include two LPG carriers — the LPG Dream Arrax and LPG Dream Vermax — along with $45 million in cash contributed by Toro. AI Okto Corp. intends to develop an artificial intelligence-enabled operating model through partnerships with vendors, data-infrastructure providers, and maritime technology firms.

Toro shareholders would receive AI Okto shares without taking any action, paying consideration, or exchanging Toro common shares. Fractional shares will not be distributed directly; instead, a distribution agent will aggregate and sell fractional shares on the open market, distributing net cash proceeds to eligible shareholders.

Toro's Chairman and Chief Executive Officer, Petros Panagiotidis, is expected to serve as Chairman and CEO of AI Okto Corp. following the spin-off. The transactions are subject to approval by Toro's Board of Directors, based on the recommendation of an independent special committee.

AI Okto Corp. has filed a registration statement on Form 20-F with the U.S. Securities and Exchange Commission. The spin-off remains subject to the registration statement being declared effective and approval of the Nasdaq listing. The company noted there is no assurance the spin-off will occur or, if it does, of its final terms or timing.