HUDSON TECHNOLOGIES RAISES GROSS PROCEEDS OF $3.0 MILLION
Company to use capital to expand breadth and markets of its RefrigerantSide® Services
PEARL RIVER, New York – Hudson Technologies, Inc. (NASDAQ:HDSN), a leading refrigerant services company specializing in emergency recovery and proprietary on-site decontamination services, for large comfort and process cooling systems, known as RefrigerantSide® Services, today announced that it has raised gross proceeds of $3.0 million through the sale of additional shares of Series A Preferred Stock to the Fleming US Discovery Fund III, L.P. and the Fleming US Discovery Offshore Fund III, L.P. These are the same two Fleming Funds that invested in the Company’s Series A Preferred Stock in March 1999. The Series A Preferred Stock is convertible into Common Stock at $2.375 per share, representing a 23% premium to the closing price of the Company’s common stock on February 15, 2001.
The Company said the proceeds of the sale will be used to fund the expansion of its RefrigerantSide® Services, which will permit the continued development of Hudson’s network of regional service depots and the expansion into new markets.
Commenting on the sale, Kevin J. Zugibe, the Company’s Chairman and Chief Executive Officer, stated: “The original investment by the Fleming Funds has allowed Hudson to establish service depots throughout the country, and to steadily grow revenues from the Company’s RefrigerantSide® Service. This additional investment by the Fleming Funds will help to continue this growth and strengthen our depot network. In addition, this investment allows us to begin to venture into new markets that have not been served.”
About Hudson: Hudson Technologies, Inc., together with its subsidiaries, sells refrigerants and provides services to the commercial and industrial air conditioning and refrigeration markets. The Company’s services include recovery and reclamation of the refrigerants used in commercial air conditioning and refrigeration systems. In addition, Hudson’s proprietary RefrigerantSide™ Services provide rapid response to emergencies that occur at a customer’s site, as well as routine scheduled maintenance to enhance operating efficiency. The Company’s RefrigerantSide™ Services are designed to increase operating efficiency and energy savings, remove moisture, oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems. These contaminants can be introduced into a system by means of a catastrophic equipment failure, or through less than optimal preventive maintenance that can reduce performance, cause air conditioning system outages and interrupt production. Hudson’s decontamination system removes impurities rapidly and can be utilized while the client’s system continues to function, offering significant savings to customers. This technology has reduced system downtime by as much as 80 percent when compared with conventional repair methods.
Safe Harbor statement under the Private Securities Litigation Act of 1995: Statements contained herein, which are not historical facts constitute forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the markets for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of refrigerants), regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements which become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration and other risks detailed in the Company’s other periodic reports filed with the Securities and Exchange Commission. The words “believe”, “expect”, “anticipate”, “may”, “plan”, “should” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
Stephen P.
Mandracchia
Executive Vice President
(845) 735-6000 |
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