Home Solutions of America Announces $26.7 Million Private Placement
November 23 2005 - 7:00AM
PR Newswire (US)
DALLAS, Nov. 23 /PRNewswire-FirstCall/ -- Home Solutions of
America, Inc. (AMEX:HOM), a provider of recovery, restoration and
rebuilding/remodeling services, announced today that the Company
has entered into a material agreement to raise $26,675,000 through
a private placement offering of common stock and warrants
exercisable for common stock. The net proceeds of the offering
after placement agent fees and other fees and expenses will be
approximately $24.6 million and will be used to pay off $11 million
in seller debt resulting from the acquisition of the assets of
Florida Environmental Remediation Services, Inc., to pay off $7
million of existing mezzanine debt, and for working capital
purposes. The offering is subject to standard closing conditions,
including the receipt of all subscription funds and the approval of
the listing on the American Stock Exchange of the common stock to
be issued in the offering and issuable upon exercise of the
warrants. The offering consists of 4,850,000 units at a purchase
price of $5.50 per unit, with each unit consisting of one (1) share
of common stock and a purchase warrant exercisable for a 0.20 share
of common stock. If the offering closes, the company will issue to
the investors, an aggregate 4,850,000 shares of common stock and
warrants exercisable for an aggregate 970,000 shares of common
stock. The warrants, if issued, will be exercisable immediately,
have a five-year term, and have an exercise price of $5.50 per
share. In addition, the company will issue to the placement agent,
Sanders Morris Harris Inc., warrants exercisable for 125,000 shares
of common stock. The placement agent warrants, if issued, will be
exercisable immediately, have a five-year term, and have an
exercise price of $5.50 per share. In addition, the placement agent
will receive a fee equal to 7% of the gross proceeds of the
offering. Home Solutions is a provider of recovery, restoration and
rebuilding/remodeling services to commercial and residential areas
that are (i) prone to flooding, hurricanes, tornados, fires or
other naturally occurring and repetitive weather related
emergencies; and/or (ii) experiencing robust housing development.
The Company has operations in California, Texas, Florida, Alabama,
Georgia, Louisiana, Mississippi and South Carolina through its five
subsidiaries, Cornerstone Building and Remodeling, Southern
Exposure, P.W. Stephens, Home Solutions Restoration of Louisiana
and Fiber Seal Systems. Cornerstone is a leading supplier and
installer of granite materials for kitchens and baths to national
home centers, as well as national builders and remodeling
companies, in the southeastern United States. Southern Exposure and
related companies is a provider of cabinet and countertop
installation services in the Florida marketplace. P.W. Stephens
provides mold and asbestos remediation services, and fire and water
restoration services in California, Florida and Louisiana. Home
Solutions Restoration of Louisiana provides Recovery Restoration
Services in Florida, Louisiana, Mississippi and Texas and Fiber
Seal Systems is a national licensor of cleaning and fabric
protection businesses. For more information on Home Solutions,
please see the Company's website at http://www.homcorp.com/ .
Statements included in this update that are not historical in
nature are intended to be, and are hereby identified as,
"forward-looking statements" for purposes of the safe harbor
provided by Section 21E of the Securities Exchange Act of 1934, as
amended by Public Law 104-67. Forward-looking statements may be
identified by words including "anticipate," "believe," "intends,"
"estimates," "expect," and similar expressions. The Company
cautions readers that forward-looking statements including, without
limitation, those relating to the Company's future business
prospects are subject to certain risks and uncertainties that could
cause actual results to differ materially from those indicated in
the forward-looking statements, due to factors such as those
relating to economic, governmental, technological, and other risks
and factors identified from time to time in the Company's reports
filed with the SEC. CONTACT: Michael Wachs, CEOcast, Inc. PHONE:
212-732-4300 DATASOURCE: Home Solutions of America, Inc. CONTACT:
Michael Wachs of CEOcast, Inc., +1-212-732-4300, for Home Solutions
of America, Inc. Web site: http://www.homcorp.com/
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