Particle Drilling Technologies, Inc. Announces Closing and Results of Rights Offering
HOUSTON, April 21 /PRNewswire-FirstCall/ -- Particle Drilling Technologies, Inc. (NASDAQ:PDRT) (the "Company") today announced the expiration on April 16, 2008 of its previously disclosed rights offering to existing shareholders of up to 3,500,000 shares of its common stock. The Company has been advised that it received gross proceeds of approximately $5,250,000 and has issued approximately 3,500,000 shares of its common stock to shareholders who properly exercised their rights in the rights offering.
In conjunction with the rights offering, LC Capital Master Fund, Ltd. and Millennium Partners, L.P. (collectively, the "Standby Purchasers") agreed to backstop the rights offering by agreeing to purchase any shares not purchased pursuant to the exercise of rights. In total, excluding the standby commitments, shareholders subscribed for 2,711,019 shares of the Company's common stock, including shares subscribed for by the Standby Purchasers pursuant to their basic and over-subscription privileges. The Company expects to utilize the proceeds of the rights offering for working capital and for general corporate purposes.
About the Company Particle Drilling Technologies, Inc., headquartered in Houston, Texas, is a development-stage oilfield service and technology company owning several patents and pending patents related to its Particle Impact Drilling technology. The Company's technology is designed to enhance the rate-of-penetration function in the drilling process, particularly in hard rock drilling environments. Forward Looking Statements Certain statements in this press release that are not historical but are forward-looking are subject to known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, the Company's ability to raise capital, if necessary, and its ability to obtain financing on acceptable terms, if at all, a worldwide downturn in the energy services sector, working capital constraints and other risks described in the Company's filings with the Securities and Exchange Commission. Further, the Company is a development stage company that operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control such as announcements by competitors and service providers. Contacts: J. Chris Boswell, SVP & CFO Jack Lascar / Sheila Stuewe
CONTACT: J. Chris Boswell, SVP & CFO of Particle Drilling Technologies,
2008-04-21 19:50:38 0341229 PRNEWSWIRE
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