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DEEP DOWN COMPLETES $6 MILLION FINANCING
HOUSTON, TX – August 7, 2007 – Deep Down, Inc. (OTCBB: DPDW) today announced that it has entered into a $6 million secured credit agreement with Prospect Capital Corporation to recapitalize the balance sheet and provide working capital to accelerate development of its corporate growth strategies.
“We are pleased to welcome Prospect to our business plan as a financial partner. This relationship is designed to more quickly facilitate our Company’s internal and external corporate growth strategies, in particular acquisitions of complementary businesses,” commented Robert E. Chamberlain, Jr., Deep Down’s chairman.
The senior debt facility provides for a 4-year term, an annual interest rate of 15.5% with the ability to defer up to 3.0% through a PIK (paid-in-kind) feature, principal payments of $75,000 per quarter beginning September 30, 2008, and a warrant to purchase up to 4,960,585 shares of common stock at an exercise price of $0.507 per share (set on the date the Letter of Intent was executed). The warrant is not exercisable until the two-year anniversary of the financing.
Ron Smith, Deep Down’s president commented, “This is a milestone event for the shareholders of this Company and I could not be more excited about our new relationship with Prospect. I expect this agreement to significantly enhance our growth abilities and accelerate shareholder value.”
“We plan to use $1.4 million to redeem $2.8 million of Series E Exchangeable Preferred stock, approximately $940,000 to pay off bank debt, and the balance of net proceeds for working capital, capital expenditures and general corporate purposes,” added Gene Butler, Deep Down’s chief financial officer.
Thanks for the shares whoever sold.
LMAO. Sorry serf.
Nice post.
It's always calm before the storm. Is it getting quiet?
lol
I thought the contest was over.
I thought he said break dance.
Nice call on DPDW serf.
Nice - NITE moves up to .72
I think it will affect us way sooner than 1-3 years. I hope I am wrong but we will see tomorrow. GLTU
I will be looking forward to hearing from JP.
No. We know about the 2bil already. It is the rest that should concern us.
I hope they are not convertable but at this time we really don't know. Is that what you are saying?
So are they convertables or not?
A New York Investment company has given EI 1.2 Mil in exchange for Shares.
So how does this investment company get their money back?
Given to who?
Ok so how do they raise the 1.2 million. I must be confused.
I don't think we have the whole story yet.
Posted by: Lurker from Mars
In reply to: serfdom who wrote msg# 93973 Date:7/24/2007 12:43:38 AM
Post #of 93976
Restricted Preferred Voting Stock. This is not counted against the Total Outstanding Shares, and is registered as such that it only comes into play during a hostile takeover or buyout attempt.
"This private placement investment is timed to help Eternal Image reach self-sufficiency
Lurker are all the shares restricked or did I read it wrong?
I said "if" Bee. I truly hope they are not but we will see.
You killed Daffy!
If any of these shares are convertable shares you may have to wait a long while to be in the milliomaire club.
They are smarter than most pinkies. That is how they keep their investers on board longer than most but if it walks like a duck and talks like a duck.....it is a duck .......... quack quack.
So who is going to protect the investors?
Put him down and don't wake him. We're not thru talking about him yet.
That's only when he has'nt had any sleep.
Personaly I think your cats got into your stuff.
lol
OOPS I forgot.
I wonder what else he sees walking to the 7-11.
I thought I told you to get off the stuff.
Sometimes many people blame too much on the mm's. If this is a good company and (I think it is a VERY GOOD COMPANY)when all the news comes out NITE and the rest of the crew can't hold DPDW back. Look at the product and look at the management and tell me this stock will not explode one day. I do not want to be out when when it does.
nice post brikk
Nice call from the old guy over at infiniti.
Do you think we could revive him?
Nice. I wish I knew who owned that infiniti site.
WOW lokit go!
Mom is green.
TMEN moving on news.