Aly Energy Services, Inc. (OTCMKTS:ALYE) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 of the Initial Report and (ii) adds new disclosure under Item 3.02 to include certain material items relating to the amendment to our credit facility omitted from the Initial Report.
Item 1.01 Entry into a Material Definitive Agreement
As previously reported, effective May 23, 2017, we amended our credit agreement with Permian Pelican, LLC (“Lender”) to increase the maximum revolving credit amount from $1.0 million to $1.75 million.
The amendment also provided for an extension of the final maturity date of the credit facility from December 31, 2018 to December 31, 2019.
In consideration of the increase in the revolving credit facility and the extension of the final maturity date, we agreed to issue to Lender, as an amendment fee, 1,200 shares of our Series A Convertible Preferred Stock. As previously reported, Lender acquired 16,092 shares of Series A Convertible Preferred Stock in consideration for the reduction in our outstanding indebtedness to Lender under the recapitalization transaction completed in January 2017.
Item 3.02 Unregistered Sales of Equity Securities
Effective May 23, 2017, we issued 1,200 shares of our Series A Convertible Preferred Stock to Lender as described in Item 1.01 above. The issuance of such shares was exempt from registration to the provisions of Section 4(2) of the Securities Act.
About Aly Energy Services, Inc. (OTCMKTS:ALYE)
Aly Energy Services, Inc. provides oilfield services, including surface equipment rental, solids control services and directional drilling services, to exploration and production companies. The Company provides a range of oilfield services to owners and operators of oil and gas wells. The Company offers services under various categories, including surface rental equipment, solids control systems, and directional drilling and measurement-while-drilling (MWD) services. The Company’s equipment and services are primarily designed for and used in land-based horizontal drilling. Its equipment includes centrifuges and auxiliary solids control equipment, mud circulating tanks (MCTs) and auxiliary surface rental equipment, portable mud mixing plants, containment systems, and MWD kits. The Company services the Permian Basin (in Texas and New Mexico), Eagle Ford Shale, Utica Shale, Marcellus Shale, Woodford Shale, Granite Wash, Mississippian Lime and Tuscaloosa Marine Shale.