Investors receive one right for every common share held as of record date
By Devika Patel
Knoxville, Tenn., May 6 – Nuverra Environmental Solutions Inc. priced a $5 million rights offering, according to an S-1 filed Friday with the Securities and Exchange Commission.
The company will sell rights for 19,531,250 shares. Investors will receive one right for every common share held as of 5 p.m. ET on the record date. Each subscription right will allow the holder to buy one common share at $0.256 per share, which is a 5.19% discount to the May 5 closing share price of $0.27.
The rights offering will be fully backstopped by chairman and chief executive officer Mark D. Johnsrud. Johnsrud will receive a 5% backstop fee in the form of common stock issued at $0.32 per share.
Proceeds will be used to repay debt under the company’s credit facility.
Nuverra provides environmental solutions to customers in the energy market and is based in Scottsdale, Ariz.
| Issuer: | Nuverra Environmental Solutions Inc.
|
| Issue: | Common stock
|
| Amount: | $5 million
|
| Shares: | 19,531,250
|
| Price: | $0.256
|
| Warrants: | No
|
| Pricing date: | May 6
|
| Stock symbol: | OTCBB: NESC
|
| Stock price: | $0.27 at close May 5
|
| Market capitalization: | $7.75 million
|
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