Superior Drilling Products, Inc. Announces Pricing of $2.0 Million Registered Direct Offering
October 14 2021 - 9:16PM
Business Wire
Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or
the “Company”), a designer and manufacturer of drilling tool
technologies, today announced that it entered into a share purchase
agreement with a certain institutional investor to purchase
approximately $2.0 million worth of its common stock in a
registered direct offering.
Under the terms of the share purchase agreement, the Company has
agreed to sell 1,739,131 shares of its common stock. The purchase
price for one share of common stock will be $1.15. The gross
proceeds to the Company from the registered direct offering are
estimated to be approximately $2.0 million before deducting the
placement agent's fees and other estimated offering expenses. The
offering is expected to close on or about October 19, 2021, subject
to the satisfaction of customary closing conditions.
EF Hutton, division of Benchmark Investments, LLC, is acting as
exclusive placement agent for the offering.
The offering is being made pursuant to an effective "shelf"
registration statement on Form S-3 (File No. 333-239608) filed with
the Securities and Exchange Commission (the "SEC") on July 1, 2020
and declared effective on July 29, 2020. Such shares of common
stock may be offered only by means of a prospectus, including a
prospectus supplement. A prospectus supplement, describing the
terms of the proposed offering, and accompanying prospectus related
to the offering of common stock will be filed with the SEC and will
be available on the SEC's website located at
http://www.sec.gov.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor will there be any sales of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction.
When available, copies of the prospectus supplement relating to
this registered direct offering, together with the accompanying
prospectus, can be obtained at the SEC's website at www.sec.gov or
from EF Hutton, division of Benchmark Investments, LLC, 590 Madison
Avenue, 39th Floor, New York, NY 10022, Attention: Syndicate
Department, or via email at syndicate@efhuttongroup.com or
telephone at (212) 404-7002. Before investing in this offering,
interested parties should read in their entirety the prospectus
supplement and the accompanying prospectus and the other documents
that the Company has filed/will file with the SEC that are
incorporated by reference in such prospectus supplement and the
accompanying prospectus, which provide more information about the
Company and such offering.
About Superior Drilling Products, Inc.
Superior Drilling Products, Inc. is an innovative, cutting-edge
drilling tool technology company providing cost saving solutions
that drive production efficiencies for the oil and natural gas
drilling industry. The Company designs, manufactures, repairs and
sells drilling tools. SDP drilling solutions include the patented
Drill-N-Ream® wellbore conditioning tool and the patented Strider™
oscillation system technology. In addition, SDP is a manufacturer
and refurbisher of PDC (polycrystalline diamond compact) drill bits
for a leading oil field service company. SDP operates a
state-of-the-art drill tool fabrication facility, where it
manufactures its solutions for the drilling industry, as well as
customers’ custom products. The Company’s strategy for growth is to
leverage its expertise in drill tool technology and innovative,
precision machining in order to broaden its product offerings and
solutions for the oil and gas industry.
Additional information about the Company can be found at:
www.sdpi.com.
Forward-Looking Statements
This news release contains forward-looking statements and
information that are subject to a number of risks and
uncertainties, many of which are beyond our control. All
statements, other than statements of historical fact included in
this release, including, without limitations, the anticipated
timing of the consummation of the offering and other statements
that are predictive in nature. The use of words "could," "believe,"
"anticipate," "intend," "estimate," "expect," "may," "continue,"
"predict," "potential," "project", "forecast," "should" or "plan,
and similar expressions are intended to identify forward-looking
statements, although not all forward -looking statements contain
such identifying words. These statements reflect the beliefs and
expectations of the Company and are subject to risks and
uncertainties that may cause actual results to differ materially.
These risks and uncertainties include, among other factors, the
duration of the COVID-19 pandemic and related impact on the oil and
natural gas industry, the effectiveness of success at expansion in
the Middle East, options available for market channels in North
America, the deferral of the commercialization of the Strider
technology, the success of the Company’s business strategy and
prospects for growth; the market success of the Company’s
specialized tools, effectiveness of its sales efforts, its cash
flow and liquidity; financial projections and actual operating
results; the amount, nature and timing of capital expenditures; the
availability and terms of capital; competition and government
regulations; and general economic conditions. These and other
factors could adversely affect the outcome and financial effects of
the Company’s plans and described herein. The Company undertakes no
obligation to revise or update any forward-looking statements to
reflect events or circumstances after the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20211014006166/en/
For more information, contact investor relations: Deborah
K. Pawlowski Kei Advisors LLC (716) 843-3908
dpawlowski@keiadvisors.com
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