Smart Sand Completes Acquisition of Quickthree Solutions
June 04 2018 - 6:00AM
Smart Sand, Inc. (NASDAQ:SND), a pure-play, low-cost producer of
high quality Northern White raw frac sand, announced today that it
has completed the $42.75 million acquisition of Quickthree
Solutions, Inc., a manufacturer of portable vertical frac sand
storage solutions at the wellsite.
“With the completion of this strategic
acquisition, we believe that we now have the technology, production
capacity and management team to compete in the last mile market,”
said Charles Young, Smart Sand’s Chief Executive Officer. “As
we move to become an integrated, full-service provider of frac sand
and logistics support from the mine to the wellhead, we are excited
about the opportunities as we launch this segment of the
business.”
The transaction was funded with $30 million of
cash paid at closing using cash-on hand and advances under our
credit facility and up to $12.75 million in potential earn-out
payments as system components are built and made available for sale
or lease over a three-year period. As of June 1, 2018, $45
million was outstanding under our credit facility.
Forward-looking Statements
All statements in this news release other than
statements of historical facts are forward-looking statements that
contain our current expectations about our future results. We
have attempted to identify any forward-looking statements by using
words such as "expect," “will,” “estimate,” “believe” and
other similar expressions. Although we believe that the
expectations reflected, and the assumptions or bases underlying our
forward-looking statements are reasonable, we can give no assurance
that such expectations will prove to be correct. Such
statements are not guarantees of future performance or events and
are subject to known and unknown risks and uncertainties that could
cause our actual results, events or financial positions to differ
materially from those included within or implied by such
forward-looking statements.
Factors that could cause our actual results to
differ materially from the results contemplated by such
forward-looking statements include, but are not limited to,
fluctuations in product demand, regulatory changes, adverse weather
conditions, increased fuel prices, higher transportation costs,
access to capital, increased competition, changes in economic or
political conditions, and such other factors discussed or
referenced in the “Risk Factors” section of our Form 10-K, filed
with the U.S. Securities and Exchange
Commission on March 15, 2018.
You should not place undue reliance on our
forward-looking statements. Any forward-looking statement speaks
only as of the date on which such statement is made, and we
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, changed circumstances, or otherwise, unless required
by law.
About Smart Sand
Smart Sand is a pure-play, low-cost producer of
high-quality Northern White raw frac sand. We sell our products
primarily to oil and natural gas exploration and production
companies and oilfield service companies. We own and operate a raw
frac sand mine and processing facility near Oakdale, Wisconsin, at
which we currently have approximately 321 million tons of proven
recoverable reserves. We currently have approximately 5.5 million
tons of annual processing capacity. For more information,
please visit
www.smartsand.com.
Contact:
Lee BeckelmanPhone: (281) 231-2660E-mail:
lbeckelman@smartsand.com
Phil CernigliaPhone: (281) 231-2660E-mail:
pcerniglia@smartsand.com
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