Key Developments For PMFG, Inc.
PMFG, Inc. (PMFG.O) (Consolidated Issue listed on NASDAQ Global Market)
PMFG Inc Announces Two Contract Awards For Process Products Totaling Approximately $5.5 Million
PMFG Inc announced that it has been awarded two Process Products contracts with a combined value of approximately $5.5 million. The first order is for the supply of pulsation dampeners for a gas compression project in Saudi Arabia. Pulsation dampeners are an integral part of compressor systems and are designed to ensure safe and efficient compressor performance. The Company expects to deliver this equipment between May and July 2010. The second order is for the supply of steam dryer systems destined for a nuclear power plant in Europe as part of a plant modernization project. Steam dryers or secondary separators are utilized as the final stage of water separation within a reactor vessel (BWR plants) or steam generator vessel (PWR plants). These units utilize the Company's P8X vanes. The Company expects to deliver these units in July 2010.
PMFG Inc. Files Two Registration Statements
PMFG Inc. announced that it has filed a registration statement with the Securities and Exchange Commission (the SEC) that, when declared effective by the SEC, would allow the Company to sell, from time to time, up to $60 million of the Company's equity securities in one or more offerings. The proposed registration statement is intended to give the Company greater flexibility to raise funds from the offering of its equity securities, subject to market conditions and the Company's capital needs. The terms of any offering under the registration statement will be established at the time of the offering. When declared effective by the SEC, the registration statement would enable the Company to raise funds from the offering through underwriters, agents, dealers or by sales to direct purchasers. The proceeds from the sales of securities by the Company under the registration statement will be used for the purposes described in a prospectus supplement filed at the time of any offering. Under the terms of our existing credit agreement, all or part of the net proceeds from any offering may be required to be used to repay indebtedness under the credit agreement. In addition, the Company filed a resale registration statement with the SEC that, when declared effective by the SEC, would allow the holders of its Series A Convertible Preferred Stock and warrants issued on September 4, 2009 to sell, from time to time, shares of the Company's common stock.
PMFG Inc Announces $21.14 Million Private Placement of Convertible Preferred Stock and Warrants
PMFG Inc announced that it has completed a private placement of $21.14 million of a newly created class of Series A convertible preferred stock and warrants. The Company used the net proceeds from the offering and available cash to repay all outstanding indebtedness under its subordinated term loan. The preferred stock is immediately convertible into approximately 2.64 million shares of the Company's common stock at an initial conversion price of $8.00 per share, subject to certain antidilution adjustments. Holders of the preferred stock are entitled to quarterly dividends at an annual rate of 6.0%, payable in cash or equity, or a combination thereof, at the Company's option. In addition, in some circumstances the investors will be entitled to participate in future unregistered offerings of the Company's equity securities. Both the Company and the holders may cause the redemption of the preferred stock after the fifth anniversary of issuance subject to certain conditions. The preferred stock does not have voting rights. Needham & Company, LLC served as the exclusive placement agent for the offering.
PMFG Inc. Announces Three Contract Awards
PMFG Inc. announced that it has been awarded two Environmental Systems contracts with a combined value of $4,200,000 and has also been awarded one contract for heat exchangers valued at $3,100,000. The first Environmental Systems order is for the design and supply of Selective Catalytic Reduction (SCR) Systems for installation on two heat recovery steam generators at the Edwardsport Station Integrated Gassification Combined Cycle (IGCC) facility operated by Duke Energy. The second Environmental Systems order is for the design and supply of SCR Systems for installation on three fired heater units located at two different facilities for a large domestic refiner. The third order is for the design and supply of thirteen heat exchangers for installation on Floating Production/Storage/Offloading (FPSO) vessel. This order is the most recent in a series of similar orders for the same U.S. customer, whose specialty is FPSO design. This order is valued at $3,100,000, and the equipment is scheduled for delivery in the fourth calendar quarter of 2009.
PMFG Inc. Receives Two Contracts With a Combined Value of $5,000,000 for Air Pollution Reduction Systems
PMFG Inc. announced that it has been awarded two Environmental Systems contracts for a combined value of $5,000,000.
