Deep Down Receives Second $9.0 Million Order for BuoyancyJune 5, 2008 2:20 PM ET advertisement cleDeep Down Inc (DPDW)
All PR Newswire newsHOUSTON, June 5 /PRNewswire-FirstCall/ -- Deep Down, Inc. (OTC Bulletin Board: DPDW) today announced that it has received a second letter of intent for approximately $9 million from Delba International to supply and install the deepwater marine drilling riser flotation system for the new-build Delba IV semisubmersible drilling rig. The letter of intent is subject to the negotiation of a final purchase order once engineering is completed. The Letters of Intent authorize expenditures for such engineering efforts. Together with the previously announced Letter of Intent for the Delba III, Deep Down now has orders for approximately $18 million of deepwater marine drilling riser flotation systems. Both the Delba III and the Delba IV are rated to drill in 2,400 meters of water but are readily upgradeable to 2,700 meters and have long term contracts to drill in Brazilian waters.
"A Letter of Intent is the first step in a committed process which typically becomes a purchase contract upon completion of joint engineering efforts between us and our clients," commented Ronald E. Smith, Deep Down's president and CEO.
About Deep Down, Inc.
Deep Down specializes in the provision of innovative solutions, installation management, engineering services, support services, custom fabrication and storage management services for the offshore subsea control, umbilical, and pipeline industries. The company fabricates component parts of subsea distribution systems and assemblies that specialize in the development of subsea fields and tie backs. These items include umbilicals, flow lines, distribution systems, pipeline terminations, controls, winches, and launch and retrieval systems, among others. Deep Down provides these services from the initial field conception phase, through manufacturing, site integration testing, installation, topside connections, and the final commissioning of a project.
The Company's Flotation Technologies subsidiary is a recognized leader in the design and manufacture of deepwater buoyancy systems, specializing in Flotec(TM) syntactic foam and polyurethane elastomer products. With extensive engineering, design, fabrication, and analysis capabilities, Flotation Technologies provides quick turnaround, cost-effective buoyancy and elastomer products to the worldwide oceanographic, offshore energy, seismic, and military markets.
The Company's Mako subsidiary serves the growing offshore petroleum and marine industries with technical support services, and products vital to offshore petroleum production, through rentals of its remotely operated vehicles (ROV), topside and subsea equipment, and diving support systems used in diving operations, maintenance and repair operations, offshore construction, and environmental/marine surveys.
The Company's ElectroWave subsidiary offers products and services in the fields of electronic monitoring and control systems for the energy, military, and commercial business sectors. ElectroWave designs, manufactures, installs, and commissions integrated PLC and SCADA based instrumentation and control systems, including ballast control and monitoring, drilling instrumentation, vessel management systems, marine advisory systems, machinery plant control and monitoring systems, and closed circuit television systems.
The Company's strategy is to become a leading provider of products and services to the offshore industry, including shallow, deep and ultra-deep water applications in oil and gas exploration, development and production activities and maritime operations. Management plans to achieve this strategy through organic growth and strategic acquisitions of complementary businesses with technological advantages in deepwater environments. Deep Down's customers include Acergy, Aker Kvaerner, Amerada Hess, Anadarko Petroleum Corporation, BHP, BP Petroleum, Cabett, Cooper Cameron, Chevron Corporation, Delba International, Dril-Quip, Inc., Devon Energy Corporation, Diamond Offshore, Duco, Exxon Mobil Corporation, Helix, JDR, Kerr-McGee Corporation, Marinette Marine Corporation, Marathon Oil Corporation, Nexans, Inc., Noble Energy Inc., Oceaneering International, Inc., Oil States, Petrobras, Royal Dutch Shell, Statoil, Subsea 7, Inc., Technip, Transocean Offshore, Veolia Environmental Services and Wellstream International, among others. For further company information, please visit http://www.deepdowninc.com, and http://www.flotec.com,http://www.makotechnologies.com and http://www.electrowaveusa.com.Posts: 2437 | Registered: Mar 2006
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Completion of Acquisition or Disposition of Assets, Unregistered Sale of Equity S
ITEM 2.01 - Completion of Acquisition or Disposition of Assets. On the 5th day of June we completed the acquisition of 100% of the equity securities of Flotation Technologies, Inc., a Maine corporation, pursuant to the Stock Purchase Agreement entered into April 17, 2008.
The equity interest was acquired from the three individual shareholder members of the same family and related technology was acquired from an entity affiliated with the selling stockholders. No prior material relationship existed between the selling shareholders and Deep Down, any of our affiliates, or any of our directors or officers, or any associate of any of our officers or directors.
The total consideration paid for the equity is $22,100,000 cash, 1,714,286 shares of common stock and 600,000 incentive common stock purchase options issued to employees of Flotation Technologies with an exercise price of $1.15 per share. In addition warrants to purchase 200,000 common shares at $0.70 per share were issued to the affiliated entity for acquisition of the related technology.
Flotation Technologies engineers, designs and manufactures deepwater buoyancy systems using high-strength FlotecTM syntactic foam and polyurethane elastomers. Flotation Technologies' product offerings include distributed buoyancy for flexible pipes and umbilicals, drilling riser buoyance modules, ROV buoyancy, Quick-Loc? cable floats, Hardball umbilical floats, FLOTECT? cable and pipeline protection, Inflex polymer bend restrictors, and installation buoyancy of any size and depth rating.
Posts: 2437 | Registered: Mar 2006
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posted
Looks like I am the only one still here in this stock. All the good news must have chased everyone away.
Well anyway, did anyone else notice the PR part that said they are eliminating their debt? That sould get this mooooving higher.
Posts: 2437 | Registered: Mar 2006
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I am onboard...I bought in yesterday at $1.20 and it took a hit yesterday, but seems to be making up for it today...Am I too late getting into this stock? I've researched it and I like it, but I also see the steady climb it has taken since March is the run over?
Posts: 51 | From: Upstate ny | Registered: Jun 2008
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Alrite Stockstar this sounds good...thanks for the cameras link they are awesome!
Posts: 51 | From: Upstate ny | Registered: Jun 2008
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The thirteen is just my favorite number and is not my age...yes this is my sole stock that i am involved in...I jumped around a little before this one, but I am fairly new to the stock market, and i know the basic fundamentals, but I get lost when you guys start talking about volume and "MM" and all of that stuff.
Posts: 51 | From: Upstate ny | Registered: Jun 2008
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LMAO bilgert...! Welcome aboard Greenteam13 Peaser...I am not real sure what the share structure is...I've been playing around with this from about .60 late last summer...up to 2.25 and have flipped it several times...made a little $...if you play it right...there's a little chunk to be made...just don't get to greedy with it...it goes down quciker than it goes up...
Have a good one all!
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards! Posts: 8884 | Registered: Jan 2006
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quote:Originally posted by Peaser: Anyone have the latest O/S here?
I am guessing 172 mil or so.
Anyone have a more accurate count?
At May 14, 2008, there were 115,846,019 shares of common stock outstanding
On June 5, 2008, Deep Down, Inc. (the “Company”) entered into a Purchase Agreement (the “Purchase Agreement”) with institutional accredited investors (the “Purchasers”) to sell and issue to the Purchasers’ in reliance on the exemption from registration in Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), an aggregate of 57,142,857 shares, or $40,000,000 of shares, of the Company’s Common Stock (the “Shares”) at a price of $0.70 per Share, for net proceeds of approximately $37,125, 000. Completion of the private placement was subject to completion of our previously announced acquisition of Flotation Technologies described in 2.01 above. Dahlman Rose & Company, LLC acted as exclusive placement agent for the financing.
You were pretty much on the money Peaser. Just a few shares shy of 173MM, the private placement is restricted I am sure but still lots out. TMAN...
-------------------- In the end, trust only yourself when trading stocks. Posts: 1993 | From: Texas | Registered: Feb 2006
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quote:Originally posted by PCola77: Do either (or I guess both) of us have multiple personalities? Maybe you *are* me...
Amazing thought...no wonder we are in so many of the same POS stocks (not counting DPDW).
DPDW is the real deal. If we could get up to just a few dollars I think we could get some mutual fund activity. Lots of value here. Posts: 2437 | Registered: Mar 2006
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posted
This thing has had a steady decline from $1.20 in the last almost month or so...what's the deal here?
Posts: 51 | From: Upstate ny | Registered: Jun 2008
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