Superior Drilling Products, Inc. Announces $ 2.0 Million Registered Direct Offering Price
VERNAL, Utah – (BUSINESS WIRE) – Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the “Company”), a developer and manufacturer of drilling tool technology, today announced that it has entered into a share purchase agreement with a designated institutional investor to purchase common stock in the Valued at approximately $ 2.0 million as part of a registered direct offering.
Under the terms of the share purchase agreement, the company has agreed to sell 1,739,131 of its common shares. The purchase price for one common share is $ 1.15. The Company’s gross proceeds from the registered direct offering are estimated at approximately $ 2.0 million before the deduction of placement agent fees and other estimated offering costs. The offer is expected to end on or around October 19, 2021, provided the customary closing conditions are met.
EF Hutton, a division of Benchmark Investments, LLC, is acting as the exclusive placement agent for the offering.
The offering is made under an effective “Regal” registration notice on Form S-3 (File Number 333-239608) filed with the Securities and Exchange Commission (the “SEC”) on July 1, 2020 and declared effective July 1 became February 29, 2020. Such common shares may only be offered by means of a prospectus including a prospectus supplement. A supplement to the prospectus describing the terms of the proposed offering and the accompanying prospectus relating to the offering of common stock will be filed with the SEC and available on the SEC’s website 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 sale of these securities in any jurisdiction in which such offer, solicitation or sale is prior to registration or qualification among the securities laws of such a jurisdiction would be illegal.
Copies of the prospectus supplement to this registered direct offering, along with the accompanying prospectus, when available, can be obtained from 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 email [email protected] or call (212) 404-7002. Before investing in this offering, interested parties should read in full the Supplement and the accompanying Prospectus and other documents that the Company has filed / will file with the SEC and which are incorporated by reference into this Supplement and the accompanying Prospectus Information about the company and such an offer.
About Superior Drilling Products, Inc.
Superior Drilling Products, Inc. is an innovative, state-of-the-art drilling tool technology company providing cost-effective solutions that increase production efficiency for the oil and gas drilling industry. The company develops, produces, repairs and sells drilling tools. SDP drilling solutions include the patented Drill-N-Ream® well conditioning tool and the patented Strider ™ oscillation system technology. In addition, SDP is a manufacturer and processor of PDC drill bits (polycrystalline diamond compact) for a leading oil field service company. SDP operates a state-of-the-art drilling tool manufacturing facility where it manufactures its solutions for the drilling industry as well as custom products. The company’s growth strategy is to leverage its expertise in drilling tool technology and innovative precision machining to expand its product offering and solutions for the oil and gas industry.
More information about the company can be found at: www.sdpi.com.
This press 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, contained in this press release including, without limitation, the estimated time of completion of the offering and other statements that are forward-looking in nature. The use of the words “could”, “believe”, “anticipate”, “intend”, “estimate”, “expect”, “may”, “continue”, “predict”, “potentially”, “project”, “predict.” “. , “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 company’s beliefs and expectations and are subject to risks and uncertainties. This could cause actual results to differ materially. These risks and uncertainties include the duration of the COVID-19 pandemic and the associated effects on the oil and natural gas industry, the effectiveness of the successes in expanding in the Middle East, options availability for market channels in North America, the postponement of commercialization the Strider technology, the success of the company’s business strategy and growth prospects, the market success of the company’s specialized tools, the effectiveness of its sales efforts, its cash flow and liquidity; Financial projections and actual operating results; Amount, type and time of capital expenditure; the availability and terms of capital; Competition and government regulations; and general economic conditions. These and other factors could adversely affect the results and financial effects of the company’s plans described herein. The company assumes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this publication.