Picked up an additional 13000 @ $.40. I guess I'm a glutton for punishment. These shares have to be running out soon. Look where the big boys are getting their shares.
Deep Down also announced it has reached an agreement with Ironman Energy Capital, L.P. to close a private placement of 3,125,000 shares of common stock of the company at $0.96 per share, or $3,000,000 in the aggregate, in an agreement reached on October 2, 2007 when the closing price was $1.03 per share. The Company expects closing to take place on or before Friday, October 12, 2007.
“With this Preferred Stock transaction, we have reduced indebtedness by another $2,250,000, thereby continuing our efforts to strengthen Deep Down’s balance sheet. In addition, the Company has eliminated future non-cash interest charges associated with these shares of Preferred Stock. The value of the common stock received by Mr. Smith and Ms. Budrunas, based on the closing price on September 13, 2007, the date of agreement, was $1,473,750. Mr. Smith and Ms. Budrunas are signaling their confidence in the future of Deep Down by effectively accepting shares of common stock as if it were priced at $1.00 per share,” commented Robert E. Chamberlain, Jr., Deep Down’s chairman.
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.
Mr. Butler will receive 3 million options, each to purchase one share of common stock of Deep Down, Inc. at an exercise price of $0.515 per share. One-third of such options will vest on each of May 31, 2008, 2009 and 2010. The options will expire on August 31. 2010.
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