Enservco Corporation (NYSEMKT:ENSV) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
On December 2, 2016, Enservco Corporation (the Company) entered
into an underwriting agreement (the Underwriting Agreement) with
William Blair Company, L.L.C. (the Underwriter), providing for
the offer and sale in a firm commitment offering of 11,250,000
shares (the Initial Shares) of the Companys common stock, $0.005
par value per share (the Common Stock), at a public offering
price of $0.40 per share. to the Underwriting Agreement, the
Company granted the Underwriter a 30-day option to purchase up to
1,687,500 additional shares of Common Stock (the Additional
Shares and, together with the Initial Shares, the Shares) at the
public offering price. On December 5, 2016, the Underwriter
exercised in full its option to purchase the Additional Shares.
The offer and sale of the Shares is registered under the
Securities Act of 1933, as amended (the Securities Act), to a
Registration Statement on Form S-3 (File No.333-195328), as
amended (the Shelf Registration Statement), which was declared
effective by the Securities and Exchange Commission (the SEC) on
April 30, 2014. A preliminary prospectus supplement in connection
with the offering was filed with the SEC on December 1, 2016, and
a final prospectus supplement in connection with the offering was
filed with the SEC on December 2, 2016 (collectively, the
Prospectus). The sale of the Shares closed on December 7, 2016.
The Company intends to use the net proceeds from the offering of
approximately $4.5 million to repay outstanding indebtedness
under its revolving credit facility thereby increasing its
liquidity for general corporate purposes, acquisitions and/or
capital expenditures.
In the Underwriting Agreement, the Company made customary
representations and warranties to the Underwriter regarding is
business and financial statements and agreed to indemnify the
Underwriter against certain liabilities, including liabilities
under the Securities Act, or to contribute to payments the
Underwriter may be required to make as a result of any such
liabilities.
The Underwriter may in the future perform investment banking
services for the Company in the ordinary course of business for
which it would receive customary compensation.
The foregoing description of the Underwriting Agreement is
qualified in its entirety by reference to the full text of the
Underwriting Agreement, which is attached as Exhibit 10.1 to this
Current Report on Form 8-K and incorporated in this Item 1.01 by
reference.
Item 7.01. Regulation FD Disclosure.
On December 7, 2016, the Company issued a press release
announcing that it had closed the offering of the Shares. A copy
of the press release is furnished as Exhibit 99.1 hereto and is
incorporated herein by reference.
The information in this Current Report on Form 8-K furnished to
Item 7.01, including Exhibit 99.1,shall not be deemed to be filed
for purposes of Section 18 ofthe Securities Exchange Act of 1934,
as amended (the Exchange Act), or otherwise subject to liability
under such section, and they shall not be deemed incorporated by
reference in any filing under the Securities Act or the Exchange
Act, except as shall be expressly set forth by specific reference
in such filing. By filing this Current Report on Form 8-K and
furnishing this information to Item 7.01,the Companymakes no
admission as to the materiality of any information in Item 7.01
of this CurrentReport on Form 8-K, including Exhibit 99.1, that
is required to be disclosed solely by Regulation FD.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
The following exhibits are included with this Current Report on
Form 8-K:
Exhibit No. |
Description |
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10.1 |
Underwriting Agreement dated December 2, 2016, between |
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|
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99.1 |
Press release dated December 7, 2016. |
About Enservco Corporation (NYSEMKT:ENSV)
Enservco Corporation provides well and fluid management services to the domestic onshore oil and natural gas industry. The Company’s services include frac water heating, hot oiling and acidizing (well enhancement services), and water transfer, water treatment, water hauling, fluid disposal, frac tank rental (fluid management services) and other general oilfield services. Well enhancement services consist of frac water heating, acidizing, hot oiling services and pressure testing. These services are provided by its subsidiary, Heat Waves Hot Oil Service LLC (Heat Waves), which utilize a fleet of approximately 200 custom designed trucks and other related equipment. The Company owns or leases, and operates approximately 65 water-hauling trucks and trailers equipped with pumps to move water from or into wells, tanks and other storage facilities. Each truck has a hauling capacity of approximately 130 barrels. It also provides well-site construction and roustabout services. Enservco Corporation (NYSEMKT:ENSV) Recent Trading Information
Enservco Corporation (NYSEMKT:ENSV) closed its last trading session down -0.008 at 0.485 with 313,470 shares trading hands.