Geokinetics Inc. Raises $30 Million From Sale of Additional Preferred Stock
July 29 2008 - 10:44AM
PR Newswire (US)
HOUSTON, July 29 /PRNewswire-FirstCall/ -- Geokinetics Inc.
(AMEX:GOK) (the "Company") today announced that it has raised $30.0
million from the sale of additional shares of its existing Series B
Senior Convertible Preferred Stock to fund growth initiatives and
provide working capital for the business. The Company closed the
sale of 120,000 shares of its 8% Series B Senior Convertible
Preferred Stock, $10.00 par value ("Series B Preferred Stock"), and
warrants to purchase 240,000 shares of Geokinetics common stock for
an aggregate consideration of $30.0 million to Avista Capital
Partners, L.P. and Avista Capital Partners (Offshore), L.P.
Inclusive of this transaction, 377,526 shares of Series B Preferred
Stock are outstanding. Treating the Series B Preferred Stock on an
as-converted basis, the Series B purchasers hold approximately 38%
of the Company's voting stock immediately upon closing. The
warrants have a five-year life and are exercisable at $20 per
share. The proceeds from the sale of Series B Preferred Stock and
warrants will be used to fund the Company's capital expenditure
budget, recently increased from $64.7 million to $80.0 million, for
working capital required to support the Company's growth
initiatives and for general corporate purposes. Richard F. Miles,
President and Chief Executive Officer said, "As part of our
strategic plan for focused growth, Geokinetics has made, and
expects to continue making, significant investments in capital
equipment in response to strong customer demand for our seismic
data acquisition and data processing services. The completion of
this financing gives us the financial strength and flexibility we
need at an attractive cost of capital. The proceeds will enable us
to fully fund our increased capital expenditure budget for growing
our revenue-generating capacity in attractive markets. Avista has
been, and continues to be, a very supportive stockholder and we are
pleased to expand the relationship further through this
transaction." About Geokinetics Inc. Geokinetics Inc., based in
Houston, Texas, is a leading global provider of seismic acquisition
and high-end seismic data processing services to the oil and gas
industry. Geokinetics has strong operating presence in North
America and is focused on key markets internationally. Geokinetics
operates in some of the most challenging locations in the world
from the Arctic to mountainous jungles to the transition zone
environments. More information about Geokinetics is available at
http://www.geokinetics.com/. Forward-Looking Statements This press
release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
All statements, other than statements of historical facts, included
in this release that address activities, events or developments
that Geokinetics expects, believes or anticipates will or may occur
in the future are forward-looking statements. These statements
include but are not limited to statements about the business
outlook for the year, backlog and bid activity, business strategy,
related financial performance and statements with respect to future
benefits. These statements are based on certain assumptions made by
Geokinetics based on management's experience and perception of
historical trends, industry conditions, market position, future
operations, profitability, liquidity, backlog, capital resources
and other factors believed to be appropriate. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of Geokinetics, which may cause
actual results to differ materially from those implied or expressed
by the forward-looking statements. These include risks relating to
financial performance and results, job delays or cancellations,
impact from severe weather conditions and other important factors
that could cause actual results to differ materially from those
projected, or backlog not to be completed, as described in the
Company's reports filed with the Securities and Exchange
Commission. Backlog consists of written orders and estimates of
Geokinetics' services which it believes to be firm, however, in
many instances, the contracts are cancelable by customers so
Geokinetics may never realize some or all of its backlog, which may
lead to lower than expected financial performance. Although
Geokinetics believes that the expectations reflected in such
statements are reasonable, it can give no assurance that such
expectations will be correct. All of Geokinetics' forward-looking
statements, whether written or oral, are expressly qualified by
these cautionary statements and any other cautionary statements
that may accompany such forward-looking statements. Any
forward-looking statement speaks only as of the date on which such
statement is made and Geokinetics undertakes no obligation to
correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise. DATASOURCE:
Geokinetics Inc. CONTACT: Scott McCurdy, Vice President and CFO of
Geokinetics Inc., +1-713-850-7600, fax, +1-713-850-7330 Web site:
http://www.geokinetics.com/
Copyright
Geokinetics, Inc. (AMEX:GOK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Geokinetics, Inc. (AMEX:GOK)
Historical Stock Chart
From Jul 2023 to Jul 2024