ExOne Enters Into Definitive Agreement with Rockwell Forest Products

ExOne Company (NASDAQ:XONE) has entered into a definitive agreement with Rockwell Forest Products, Inc. to raise around $13 million in gross proceeds in a registered direct offering of common shares.
According to the press release:

Estimated offering expenses of approximately $0.6 million will be deducted from the proceeds which, as a direct placement, are not subject to an underwriting discount or commission.  The Company has agreed to sell 1,423,877 shares of its common stock (the “Shares”) to RFP for $9.13 per share, representing a $0.50 premium over the per share market price at the close of business on January 8, 2016 (the “Offering”), the last trading day preceding the Offering.  The Offering is expected to close on or about January 13, 2016. The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes.  The sale to RFP was negotiated and approved by a committee of the Company’s Board of Directors consisting only of independent directors.  In approving the sale to RFP, the independent committee was advised by an independent financial advisor and independent legal counsel.
Effective as of the closing of the Offering, the Company will terminate its $15 million, five-year revolving credit facility (the “Credit Agreement”) with RHI Investments, LLC, an entity also controlled by S. Kent Rockwell, dated October 23, 2015.  There are no borrowings outstanding under the Credit Agreement and, upon its termination, all liens and guaranties will be released.  The termination of the Credit Agreement was approved by the credit facility committee of the Board, which also consists solely of independent directors.
S. Kent Rockwell commented, “We believe customers, globally, are adopting our 3D printing technology and transforming their manufacturing processes at an accelerating rate, which is requiring ExOne to have the availability of additional working capital.  I expect that these funds will provide the Company proper liquidity to meet our 2016 objectives of growth and profitable performance.”

Click here to read the full press release.