Vertex Energy, Inc. (the “Company”) (NASDAQ:VTNR), an environmental
services company that recycles industrial waste streams and
off-specification commercial chemical products, announced today that is
has entered into a definitive purchase agreement with institutional
investors for the sale of approximately $17.1 million of the Company’s
Pursuant to the terms of the transaction the Company has agreed to sell
the investors 2,200,000 shares of its common stock at a price of $7.75
per share, a 12.3% discount to the 30 day volume-weighted average price.
Craig-Hallum Capital Group acted as exclusive placement agent in
connection with the offering.
The Company intends to use the net proceeds from the offering for its
West Coast expansion. The closing of the offering is subject to the
satisfaction of customary closing conditions.
The securities sold in the offering have not been registered under the
Securities Act of 1933, as amended, or state securities laws and may not
be offered or sold in the United States absent registration with the
Securities and Exchange Commission (SEC) or an applicable exemption from
such registration requirements. The Company has agreed to file a resale
registration statement with the SEC registering the shares in the
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there be any
sale of these securities in any state or other jurisdiction in which
such offer, solicitation or sale would be unlawful.
About Vertex Energy, Inc.
Vertex Energy, Inc. (NASDAQ:VTNR) is a leading environmental services
company that recycles industrial waste streams and off-specification
commercial chemical products. Its primary focus is recycling used motor
oil and other petroleum by-product streams. Vertex purchases these
streams from an established network of local and regional collectors and
generators. Vertex also manages the transport, storage and delivery of
the aggregated feedstock and product streams to end users, and manages
the re-refining of a portion of its aggregated petroleum streams in
order to sell them as higher-value end products. Vertex sells its
aggregated petroleum streams as feedstock to other re-refineries and
fuel blenders or as replacement fuel for use in industrial burners. The
re-refining of used motor oil that Vertex manages takes place at its
facility, which uses a proprietary Thermal Chemical Extraction Process
(“TCEP”) technology. Based in Houston, Texas, Vertex also has offices in
Georgia and California. More information on Vertex can be found at www.vertexenergy.com.
This release contains certain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding Vertex’s expectations regarding the
completion of the offering described above. These statements are based
on management’s current expectations and accordingly are subject to
uncertainty and changes in circumstances. Actual results and the timing
of events may vary materially from those expressed or implied by such
forward-looking statements due to various important factors, including,
without limitation, risks and uncertainties related to Vertex’s business
and the satisfaction of the conditions of the closing of the offering.
More detailed information about those factors is set forth in Vertex’s
filings with the Securities and Exchange Commission, including Vertex’s
annual report on Form 10-K, quarterly reports on Form 10-Q, and current
reports on Form 8-K. Vertex is under no obligation (and expressly
disclaims any such obligation) to update or alter its forward-looking
statements whether as a result of new information, future events or
Investor Relation Contacts
Porter, LeVay & Rose, Inc.
Nurse, DM, (212) 564-4700
SVP – Investor Relations
Matthew Lieb, (310) 400-0421
Source: Vertex Energy, Inc.