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DTI and SDPI Announce Deadline for Election of Form of Merger Consideration

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DTI and SDPI have announced the deadline for SDPI shareholders to elect their preferred form of merger consideration in the pending acquisition. The Election Deadline is set for 5:00 p.m., New York time, on July 29, 2024. If approved, the Merger is expected to close on August 1, 2024. SDPI shareholders can choose between 0.313 shares of DTI common stock or $1.00 in cash per SDPI share. The election is subject to proration to ensure DTI issues between 4,112,752 and 4,845,240 shares. Shareholders should carefully review the Proxy Statement and Election Form before making their decision.

DTI e SDPI hanno annunciato la scadenza per gli azionisti di SDPI per scegliere la loro forma preferita di compensazione per la fusione nell'acquisizione in corso. La Scadenza per l'Elettorato è fissata per le 17:00, ora di New York, del 29 luglio 2024. Se approvata, la fusione dovrebbe concludersi il 1 agosto 2024. Gli azionisti di SDPI possono scegliere tra 0,313 azioni ordinarie di DTI o 1,00$ in contanti per ogni azione di SDPI. L'elezione è soggetta a proporzionalità per garantire che DTI emetta tra 4.112.752 e 4.845.240 azioni. Gli azionisti dovrebbero esaminare attentamente il Documento di Voto e il Modulo di Elezione prima di prendere una decisione.

DTI y SDPI han anunciado la fecha límite para que los accionistas de SDPI elijan su forma preferida de compensación por la fusión en la adquisición pendiente. La Fecha Límite de Elección está establecida para las 5:00 p.m., hora de Nueva York, del 29 de julio de 2024. Si se aprueba, se espera que la fusión se cierre el 1 de agosto de 2024. Los accionistas de SDPI pueden elegir entre 0,313 acciones ordinarias de DTI o $1.00 en efectivo por cada acción de SDPI. La elección está sujeta a prorrateo para asegurar que DTI emita entre 4,112,752 y 4,845,240 acciones. Los accionistas deben revisar cuidadosamente el Documento de Poder y el Formulario de Elección antes de tomar su decisión.

DTI와 SDPI는 pending 인수에서 SDPI 주주가 선호하는 합병 보상 형태를 선택할 수 있는 기한을 발표했습니다. 선택 마감일2024년 7월 29일 오후 5시(뉴욕 시간)으로 설정되어 있습니다. 승인되면 합병은 2024년 8월 1일에 완료될 것으로 예상됩니다. SDPI 주주는 DTI 보통주 0.313주 또는 SDPI 주당 $1.00 현금 중에서 선택할 수 있습니다. 이 선택은 DTI가 4,112,752주에서 4,845,240주 사이의 주식을 발행하도록 보장하기 위해 비례 배분의 적용을 받습니다. 주주들은 결정을 내리기 전에 Proxy Statement와 Election Form을 신중하게 검토해야 합니다.

DTI et SDPI ont annoncé la date limite pour que les actionnaires de SDPI choisissent leur forme de compensation de fusion préférée dans le cadre de l'acquisition en cours. La Date Limite de Vote est fixée à 17h00, heure de New York, le 29 juillet 2024. Si elle est approuvée, la fusion devrait se clôturer le 1er août 2024. Les actionnaires de SDPI peuvent choisir entre 0,313 actions ordinaires de DTI ou 1,00 $ en espèces par action de SDPI. Le vote est soumis à une proratisation pour garantir que DTI émet entre 4 112 752 et 4 845 240 actions. Les actionnaires doivent examiner attentivement le Document de Procuration et le Formulaire de Vote avant de prendre leur décision.

DTI und SDPI haben die Frist bekannt gegeben, bis zu der die Aktionäre von SDPI ihre bevorzugte Form der Fusionsvergütung im Rahmen der anstehenden Übernahme wählen können. Die Wahlfrist endet am 29. Juli 2024 um 17:00 Uhr New Yorker Zeit. Bei Genehmigung wird die Fusion voraussichtlich am 1. August 2024 abgeschlossen. Die Aktionäre von SDPI können zwischen 0,313 DTI Stammaktien oder 1,00 USD in bar pro SDPI-Aktie wählen. Die Wahl unterliegt einer Proportionalität, um sicherzustellen, dass DTI zwischen 4.112.752 und 4.845.240 Aktien ausgibt. Die Aktionäre sollten das Proxy-Statement und das Wahlformular sorgfältig überprüfen, bevor sie ihre Entscheidung treffen.

Positive
  • Merger expected to close soon, indicating progress in the acquisition process
  • SDPI shareholders have options for consideration, providing flexibility
  • Proration mechanism ensures balanced distribution of DTI shares
Negative
  • Shareholders may not receive their preferred form of consideration due to proration
  • Short timeframe for shareholders to make election decisions
  • Potential for shareholder dilution depending on stock election choices

HOUSTON and VERNAL, Utah, July 25, 2024 /PRNewswire/ -- Drilling Tools International Corporation (NASDAQ: DTI) ("DTI") and Superior Drilling Products, Inc. (NYSE: SDPI) ("SDPI") jointly announced today, that in connection with DTI's anticipated and pending acquisition of SDPI (the "Merger"), the deadline for SDPI shareholders to elect the form of merger consideration they wish to receive in the Merger has been set for 5:00 p.m., New York time, on July 29, 2024 (the "Election Deadline"). If the SDPI shareholders approve the Merger at the upcoming special meeting expected to be held July 29, 2024, DTI and SDPI expect that the Merger will close on August 1, 2024 (the "Closing Date"). If the Closing Date is delayed to a subsequent date, the Election Deadline will be similarly delayed to a subsequent date. DTI and SDPI will promptly announce any such delay and, when determined, the rescheduled Election Deadline. All terms used herein and not otherwise defined have the meanings ascribed to them in the proxy statement/prospectus (the "Proxy Statement") filed with the Securities and Exchange Commission on July 2, 2024 and mailed to shareholders of SDPI on or about July 2, 2024.

The Election Form and Letter of Transmittal (the "Election Form") necessary for SDPI shareholders to make an election as to the form of consideration they wish to receive was mailed on July 2, 2024 to holders of record of SDPI common stock, par value $0.001 per share (the "SDPI Common Stock"), as of June 24, 2024.

To make an election, all SDPI shareholders who have not previously made their cash, stock, or mixed consideration elections, or who wish to revoke a prior election and make a new election, must submit their properly completed and signed election forms with respect to their shares, together with all required documents and materials set forth in the election form and the instructions thereto, to Broadridge Financial Solutions, Inc. (the "Exchange Agent"), the exchange agent for the Merger, by the Election Deadline. SDPI shareholders who hold their shares through a bank, broker, or other nominee may be subject to an earlier deadline and should read carefully the instructions from their bank, broker, or nominee regarding making elections for their shares. SDPI shareholders with questions should contact the Exchange Agent at (855) 793-5068 or shareholder@broadridge.com

In connection with the closing of the Merger, each outstanding share of SDPI Common Stock that SDPI shareholders owned at the close of business on the effective time of the Merger, other than shares for which a valid election to exercise dissenters' rights under, and in accordance with, Utah law has been made (the procedures for which are described in the Proxy Statement), will be automatically converted into the right to receive, at their election, (A) 0.313 shares (the "Stock Election Consideration") of DTI common stock, par value $0.0001 per share (the "DTI Common Stock") or (B) $1.00 in cash (the "Cash Election Consideration"), without interest, as provided for in the Merger Agreement, and a prorated portion of the Cash Election Consideration will be paid in lieu of fractional shares of DTI Common Stock.

Please note that there is no guarantee that you will receive the form of consideration you elect and that the election to receive either or a combination of the Stock Election Consideration or Cash Election Consideration is subject to the automatic proration and allocation procedures to ensure that DTI will issue a minimum of 4,112,752 shares of DTI Common Stock or a maximum of 4,845,240 shares of DTI Common Stock, depending upon the elections made by shareholders of SDPI, in each case in accordance with the terms of the Merger Agreement and as more fully described in the Proxy Statement. As a result, the form of consideration that you elect to receive may be adjusted such that you may receive, in part, a different form of consideration than the form elected.

Shareholders of SDPI should carefully read the Proxy Statement and the Election Form and all election material provided to them before making their elections. 

About Drilling Tools International Corporation

Drilling Tools International is a Houston, Texas based leading oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. With roots dating back to 1984, DTI operates from 16 service and support centers across North America and maintains 7 international service and support centers across Europe and the Middle East; and maintain a large fleet of rental equipment, with over 65,000 tools for use in horizontal and directional drilling, as well as surface control equipment. To learn more about DTI, visit www.drillingtools.com

About Superior Drilling Products, Inc.

SDPI is an innovative, cutting-edge drilling tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling industry. The Company designs, manufactures, repairs, and sells drilling tools. SDPI drilling solutions include the patented Drill-N-Ream® well bore conditioning tool and the patented Strider oscillation system technology. In addition, SDP is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for leading oil field service companies. SDPI operates a state-of-the-art drilling tool fabrication facility, where it manufactures its solutions for the drilling industry, as well as customers' custom products. Additional information about SDPI can be found at: www.sdpi.com.

Additional Information for Superior Drilling Products, Inc. Shareholders and Where to Find It

This press release relates to a proposed acquisition of Superior Drilling Products, Inc. by Drilling Tools International Corporation. In connection with the transaction, DTI filed a registration statement on Form S-4 which includes a document that serves as a prospectus of DTI and a proxy statement of SDPI (the "proxy statement/prospectus"), and each party has filed and will file other relevant documents regarding the transaction with the Securities and Exchange Commission (the "SEC"). INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY, INCLUDING THE SCHEDULE 13E-3, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. A definitive proxy statement/prospectus was sent to shareholders of SDPI on or about July 2, 2024. Investors and security holders can obtain free copies of the registration statement and the proxy statement/prospectus and other relevant documents filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by DTI are available free of charge on the DTI website at www.drillingtools.com or by contacting DTI by email at InvestorRelations@drillingtools.com or by mail at 3710 Briarpark Drive, Suite 150, Houston, TX 77042. Copies of the documents filed with the SEC by SDPI are available free of charge on the SDPI website at https://sdpi.com or by contacting SDPI by email at dpawlowski@keiadvisors.com or by mail at 1583 S. 1700 E., Vernal, UT 84078.

Participants in the Solicitation

DTI and SDPI and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the SDPI shareholders in connection with the proposed transaction. Information about the directors and executive officers of DTI is set forth in its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 28, 2024, its Proxy Statement for its 2024 Annual Meeting Shareholders, which was filed with the SEC on April 2, 2024 and in other documents filed with the SEC by DTI and its executive officers and directors. Information about the directors and executive officers of SDPI is set forth in its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 7, 2024, its Proxy Statement for its 2023 Annual Meeting Shareholders, which was filed with the SEC on June 30, 2023, and in other documents filed with the SEC by SDPI and its executive officers and directors.

These documents can be obtained free of charge from the sources indicated above. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus and Schedule 13e-3 and other relevant materials in connection with the transaction which were filed with the SEC. Information concerning the interests of the participants in the solicitation, which may, in some cases, be different than those of SDPI's shareholders generally, is set forth in the prospectus/proxy statement relating to the proposed transaction and the Schedule 13e-3. Investors should read the proxy statement/prospectus and Schedule 13e-3 carefully before making any voting or investment decisions.

Forward-Looking Statements

This press release may include, and oral statements made from time to time by representatives of DTI and SDPI may include, "forward-looking statements." Statements regarding the business combination and the financing thereof, and related matters, as well as all other statements other than statements of historical fact included in this press release are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, statements regarding the proposed transaction, including any statements regarding the expected timetable for completing the proposed transaction, benefits of the proposed transaction, and DTI and its management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward looking statements in this press release may include, for example, statements about: (1) the demand for DTI's products and services, which is influenced by the general level activity in the oil and gas industry; (2) DTI's ability to retain its customers, particularly those that contribute to a large portion of its revenue; (3) DTI's ability to remain the sole North American distributor of the Drill-N-Ream; (4) DTI's ability to employ and retain a sufficient number of skilled and qualified workers, including its key personnel; (5) DTI's ability to market its services in a competitive industry; (9) DTI's ability to execute, integrate and realize the benefits of acquisitions, and manage the resulting growth of its business; (6) potential liability for claims arising from damage or harm caused by the operation of DTI's tools, or otherwise arising from the dangerous activities that are inherent in the oil and gas industry; (7) DTI's ability to obtain additional capital; (8) potential political, regulatory, economic and social disruptions in the countries in which DTI conducts business, including changes in tax laws or tax rates; (9) DTI's dependence on its information technology systems, in particular Customer Order Management Portal and Support System, for the efficient operation of DTI's business; (10) DTI's ability to comply with applicable laws, regulations and rules, including those related to the environment, greenhouse gases and climate change; (11) DTI's ability to maintain an effective system of disclosure controls and internal control over financial reporting; (12) the potential for volatility in the market price of DTI's common stock; (13) the impact of increased legal, accounting, administrative and other costs incurred as a public company, including the impact of possible shareholder litigation; (14) the potential for issuance of additional shares of DTI's common stock or other equity securities; (15) DTI's ability to maintain the listing of its common stock on Nasdaq; (16) the conditions to the completion of the proposed transaction, including obtaining SDPI shareholder approval and the regulatory approvals required for the transaction on the anticipated schedule or at all, (17) financing for the transaction may not be obtained by DTI on favorable terms or at all, (18) the closing of the proposed transaction may not occur or could be delayed, either as a result of litigation related to the transaction or otherwise or result in significant costs of defense, indemnification, and liability, (19) the risk that the cost savings and any other synergies from the SDPI transaction may not be fully realized by DTI or may take longer or cost more to be realized than expected, including that the SDPI transaction may not be accretive to DTI within the expected timeframe or the extent anticipated, (20) completing the SDPI transaction may distract DTI and SPDI management from other important matters, (21) the possibility that any or all of the various conditions to the consummation of the proposed transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals), (22) the possibility that competing offers or acquisition proposals for SDPI will be made, (23) the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the proposed transaction, including in circumstances, which would require a party to pay a termination fee, (24) the effect of the announcement or pendency of the proposed transaction on SDPI's ability to attract, motivate or retain key executives and employees, its ability to maintain relationships with its customers, suppliers and other business counterparties, or its operating results and business generally, (25) risks related to the proposed transaction diverting management's attention from SDPI's or DTI's ongoing business operations, (26) the amount of costs, fees and expenses related to the proposed transaction, (26) the risk that SDPI's or DTI's stock price may decline significantly if the proposed transaction is not consummated, (27) the risk of shareholder litigation in connection with the proposed transaction, including resulting expense or delay, and (28) other risks and uncertainties separately provided to you and indicated from time to time described in filings and potential filings by DTI and SDP with the SEC.

You should carefully consider the risks and uncertainties described in the information presented in DTI's Annual Report on Form 10-K for the year ended December 31, 2023 filed March 28, 2024 and the Quarterly Report on Form 10-Q for the period ended March 31, 2024 filed May 16, 2024 and SDPI's Annual Report on Form 10-K for the year ended December 31 2023 filed March 15, 2024 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and filed May 15, 2024, as well as those described in the proxy statement/prospectus. Such forward-looking statements are based on the beliefs of management of DTI and SPDI, respectively, as well as assumptions made by, and information currently available to DTI's and SPDI's management, respectively. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed above and in the prospectus/proxy statement and other filings by DTI or SPDI with the SEC. All subsequent written or oral forward-looking statements attributable to DTI, SPDI or persons acting on their respective behalf are qualified in their entirety by this paragraph. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of each of DTI and SPDI, including those set forth or to be set forth in the Risk Factors section of the prospectus/proxy statement, and described in the other filings by DTI and SPDI with the SEC. Neither DTI nor SDPI undertake any obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contacts:

DTI Investor Relations
Ken Dennard / Rick Black
InvestorRelations@drillingtools.com 

SDPI Investor Relations
Deborah K. Pawlowski / Craig P. Mychajluk
Kei Advisors LLC
716-843-3908 / 716-843-3832
dpawlowski@keiadvisors.com / cmychajluk@keiadvisors.com

Cision View original content:https://www.prnewswire.com/news-releases/dti-and-sdpi-announce-deadline-for-election-of-form-of-merger-consideration-302206303.html

SOURCE Drilling Tools International Corp.

FAQ

What is the deadline for SDPI shareholders to elect their merger consideration for the DTI acquisition?

The Election Deadline for SDPI shareholders to choose their preferred form of merger consideration is 5:00 p.m., New York time, on July 29, 2024.

What are the options for SDPI shareholders in the DTI merger?

SDPI shareholders can elect to receive either 0.313 shares of DTI common stock or $1.00 in cash for each SDPI share they own.

When is the expected closing date for the merger between DTI and SDPI?

If approved by SDPI shareholders, the merger between DTI and SDPI is expected to close on August 1, 2024.

How many shares of DTI stock will be issued in the merger with SDPI?

DTI will issue a minimum of 4,112,752 shares and a maximum of 4,845,240 shares of DTI Common Stock, depending on shareholder elections.

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