Flotek Industries has closed its previously announced private placement of convertible preferred stock and warrants to purchase shares of common stock, for gross proceeds of approximately $16 million.
FIG Partners, LLC, acted as exclusive placement agent for the Company in the private placement. Chardan Capital Markets served as an introducing broker to certain participants in the private placement.
In addition, Flotek announced that its previously announced amendment to its bank credit facility to waive covenant violations and relax future financial covenant requirements has become effective.
The net proceeds received by Flotek in the private placement will be approximately $15 million. Flotek will use the net proceeds to reduce borrowings under its bank credit facility, thereby providing additional liquidity, and for general corporate purposes.
Flotek also announced that, giving pro forma effect to the completed private placement, its stockholders' equity as of June 30, 2009 is greater than $50 million, so the Company continues to be in compliance with the continued listing requirements of the New York Stock Exchange relating to minimum average market capitalization and stockholders' equity.
Neither the Units nor the securities comprising the Units have been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent a registration statement or exemption from registration. This notice is issued pursuant to Rule 135c under the Securities Act of 1933, as amended, and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
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