Thomas Equipment Inc. Completes $25M Institutional Equity Raise and Enters New Phase
MILWAUKEE, Wis.--April 19, 2005--| Thomas secures over $50.0M in purchase orders from customers for 2005 shipments and announces work force and supply chain growth. |
Thomas Equipment Inc. ("Thomas") (OTCBB:TEQI) today announced that it completed a US $25M institutional equity offering advised by Halpern Capital Inc., www.halperncapital.com, ("Halpern"). The proceeds will be used to de-leverage Thomas' balance sheet, provide capital machinery and equipment to increase production capacity, and working capital. This offering was in the form of preferred equity convertible into Thomas' common stock at $3.00 per share, a dividend coupon of 5%, and warrant coverage of 25% at $3.75 per share.
"The recent Pneutech acquisition was a key building block in our overall strategy for Thomas. Once we had scale and great momentum, we focused our effort on strengthening our financial statement and fulfilling the organic revenue opportunities we possess with Hyundai and other OEMs." Clifford Rhee, president and CEO of Thomas said.
Rhee then said: "Since April 1, 2005, Team Thomas has secured over $50M in purchase orders from customers for 2005 shipments. Understandably, this monumental organic growth has created substantial working capital needs to support it. The swift completion of this equity offering was vital to support of these new orders and has enabled Thomas to fulfill its strategic initiatives. Furthermore, my senior management team, our Board of Directors and I were gratified by the number and quality of the institutional investors that have now joined our family of investors."
"We interviewed a number of firms before making this choice. Baruch Halpern and David Kolb were uniquely qualified to introduce Thomas to the institutional equity market," David M. Marks, chairman of Thomas said. "In our next phase, Team Thomas will focus on expanding and training our workforce to support these new orders; as well, we will ramp up our supply chain to support this growth."
Thomas' counsel, Sichenzia Ross Friedman Ference LLP, http://www.srff.com/, represented it in the transaction.
About Thomas Equipment Inc. ("TEQI"): Thomas Equipment Inc., www.thomas-equipment.com, www.thomasloaders.com, and its subsidiaries including Pneutech Inc., www.pneutech.ca, Rousseau Controls Inc., www.rousseaucontrols.com, Samsung Industry Co. Ltd., www.ss-ind.com, and Hydramen Fluid Power Limited, www.hydramen.com: Thomas is an innovative and technologically advanced global manufacturer of a full line of skid steer and mini skid steer loaders as well as attachments, mobile screening plants and six models of mini excavators. Thomas distributes its products through a worldwide network of distributors and wholesalers. In addition, Thomas' wholly owned subsidiaries manufacture specialty industrial and construction products, a complete line of potato harvesting and handling equipment, fluid power components, pneumatic and hydraulic systems, spiral wound metal gaskets, and packing material.
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