Replies to post #54231 on Koil Energy Solutions Inc. (KLNG)

[MossyOak]

Excellent news Brikk.......Very bullish of management to do that............LOL, I guess they had been reading some of JDS's posts as well!!

[Sulphur Mt.]

very similiar to the PR of Sept. 17, '07: (when the price was .65 +/-) Obviously different in transaction but willing to make a sacrifice with confidence

September 17, 2007 - 3:17 PM EDT


Deep Down Reduces Indebtedness by $2,250,000

HOUSTON, Sept. 17 /PRNewswire-FirstCall/ -- Deep Down, Inc. (OTC Bulletin Board: DPDW) today announced it has exchanged 2,250 shares ($2,250,000 aggregate face value) of Series E Redeemable Exchangeable Preferred Stock ('Preferred Stock') from Ronald E. Smith, president and chief executive officer of Deep Down, and Mary L. Budrunas, director of Deep Down, for 2,250,000 shares of common stock.

The Preferred Stock had a face value and liquidation preference of $1,000 per share, no dividend preference, and was exchangeable at the holder's option after June 30, 2007, into 6% subordinated notes due three years from the date of exchange.

'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.

[dustoff12]

Outstanding! Thank, Brikk.

[latin blood]

I don't think I understand this correctly. Did this grant cost them anything at all right now or for that matter in the future?

Sometime back I've got stock options from the company I work for - those shares were in the company's treasury. I didn't have to pay anything (in fact it was an incentive to me), and yes the catch was that they would mean money to me only if by the time I had the right to exercise them, the share price would be above the exercise price, so it would be in my best interest that the stock price increases. If this were the same concept as the ones I've got, then yes the 3 of them have an interest in seeing the stock price above 1.5 (the higher the better) before the options expire (02/14/2013) so it makes sense for them to exercise them (ie they would receive the difference between the sale price minus 1.5).

[moxyone]

kind of dovetails w/ the 1.50 convertible push

very interesting stock indeed.

in and adding...

[mystic krewe]

i may have missed it, but i was just wondering, are those shares restricted time-wise in any way? btw, where are those filings posted?

[uncleremus]

It seems to me as if they issued the options to themselves as a bonus wirh some share dilution down the road if they exercise. They didn't purchase contracts on the open market because none are traded...where is the benefit for shareholders?

[Sulphur Mt.]

still likeing that it'll take $1.50 for those options to be in the money