HOUSTON, Aug. 14,
2023 /PRNewswire/ -- Flotek Industries, Inc.
("Flotek" or the "Company") (NYSE: FTK) today announced that it has
entered into a revolving loan and security agreement in connection
with an Asset Based Loan ("ABL") with Amerisource Funding, Inc.
("Lender"). The ABL provides for a 24-month term with up to
$10 million of initial credit
availability for eligible accounts receivable and eligible
inventory. After closing and subject to certain conditions,
including an acceptable appraisal and the pledge of real estate
collateral by the Company, the credit availability is expected to
be increased by the lesser of 50% of the appraised value of the
real estate and $5 million.
Borrowings under the ABL bear interest at the Wall Street Journal
Prime Rate plus 2.5% per annum. The ABL also contains customary
administrative and facility fees.
Borrowings under the ABL are expected to be used for working
capital and other general corporate purposes. Roth Capital
Partners, LLC served as financial advisor to Flotek.
Ryan Ezell Chief Executive
Officer said, "Securing this loan is a significant step along the
Company's path to profitability. Our ability to secure this
liquidity highlights the substantial improvement in the Company's
balance sheet and financial performance including the conversion of
debt to equity driving a working capital improvement from negative
$70 million at year end to positive
$26 million at June 30, 2023. When combined with eight
consecutive quarters of improvement in operating cash flow and our
expectation of achieving positive adjusted EBITDA before year-end,
this new credit facility provides us incremental momentum toward
our goal of increasing shareholder value."
About Flotek Industries, Inc.
Flotek Industries, Inc. is an advanced technology-driven, green
chemical and data analytics company providing unique and innovative
completion solutions that have a proven, positive impact on
sustainability and reducing the overall environmental impact of
energy on air, land, water and people. Flotek has an intellectual
property portfolio of over 170 patents and a global presence in
more than 15 countries throughout North
America, Latin America, the
Middle East and North Africa. Flotek has established
collaborative partnerships focused on sustainable and optimized
chemistry and data solutions which improve well performance and
allow its customers to generate higher returns on invested
capital.
Flotek is based in Houston,
Texas and its common shares are traded on the New York Stock
Exchange under the ticker symbol "FTK". For additional information,
please visit www.flotekind.com.
Forward -Looking Statements
Certain statements set forth in this press release constitute
forward-looking statements (within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934) regarding Flotek Industries, Inc.'s business,
financial condition, results of operations and prospects. Words
such as will, continue, expects, anticipates, intends, plans,
believes, seeks, estimates and similar expressions or variations of
such words are intended to identify forward-looking statements, but
are not the exclusive means of identifying forward-looking
statements in this press release. Although forward-looking
statements in this press release reflect the good faith judgment of
management, such statements can only be based on facts and factors
currently known to management. Consequently, forward-looking
statements are inherently subject to risks and uncertainties, and
actual results and outcomes may differ materially from the results
and outcomes discussed in the forward-looking statements.
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SOURCE Flotek Industries, Inc.