Schmitt Industries, Inc. Announces Plans for Rights Offering to Shareholders
November 03 2017 - 1:40PM
Schmitt Industries, Inc. (NASDAQ:SMIT) (the “Company”) today
announced that it has filed a registration statement on Form S-1
with the Securities and Exchange Commission (the “SEC”) relating to
the distribution, at no charge, to the holders of the Company’s
outstanding common stock, no par value (“Common Stock”), of
non-transferable subscription rights to purchase shares of Common
Stock. Each holder will receive one subscription right for
each share of Common Stock owned on the record date (which is yet
to be determined), and each subscription right will entitle the
holder to purchase one-third of a share of Common Stock, which the
Company refers to as the basic subscription right.
The proposed rights offering will also include an
over-subscription right wherein holders who exercise their basic
subscription rights in full will be entitled to exercise an
over-subscription right to purchase some or all of the additional
shares of Common Stock that remain unsubscribed at the expiration
of the rights offering, subject to the availability and pro rata
allocation of shares among holders exercising the over-subscription
right.
Representatives of the Teton Westwood Mighty Mites
Fund (the “Fund”), a current shareholder of the Company, have
informed the Company that the Fund intends to exercise its basic
subscription rights in full and its over-subscription rights up to
the remaining full amount of the rights offering.
The Company intends to use the net proceeds from
the rights offering as additional capital for general corporate
purposes, to accelerate the timing of specific product development
and to enhance the Company’s sales and marketing initiatives across
the Company’s three product lines.
Questions about the rights offering or requests for
copies of the preliminary prospectus may be directed to the
Company’s Information Agent, Broadridge Corporate Issuer Solutions,
Inc., by email at Shareholder@Broadridge.com or by telephone at
800-733-1121.
A registration statement relating to these
securities has been filed with the SEC but has not yet become
effective. The securities may not be sold nor offers to buy
be accepted prior to the time the registration statement becomes
effective. This announcement shall not constitute an offer to sell,
or the solicitation of an offer to buy, the subscription rights or
the underlying Common Stock, nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification under
the securities laws of any such state.
About Schmitt Industries
Schmitt Industries, Inc., an Oregon corporation,
designs, manufactures and sells high precision test and measurement
products for two main business segments: the Balancer Segment and
the Measurement Segment. For the Balancer Segment, the Company
designs, manufactures and sells computer-controlled vibration
detection, balancing and process control systems for the worldwide
machine tool industry, particularly for grinding machines. For the
Measurement Segment, the Company designs, manufactures and sells
laser and white light sensors for distance, dimensional and area
measurement for a wide variety of commercial applications and
measurement products that accurately measure the fill levels of
tanks holding propane, diesel and other tank-based liquids and
transmit that data via satellite to a secure web site for display.
The Company also provides sales and service for Europe and Asia
through its wholly owned subsidiary, Schmitt Europe Limited (SEL),
located in Coventry, England and through its sales representative
office located in Shanghai, China.
CORPORATE OFFICE:2765 NW NICOLAI ST.●
PORTLAND, OREGON 97210 ● 503/227-7908 ●
FAX 503/223-1258
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