UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
December 7, 2020
SUPERIOR DRILLING PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
Utah (State of Incorporation) |
46-4341605 (I.R.S. Employer Identification No.) | |
1583 South 1700 East Vernal, Utah (Address of principal executive offices) |
84078 (Zip code) |
Commission File Number: 001-36453
Registrant’s telephone number, including area code: (435) 789-0594
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities Registered Pursuant to Section 12(b) of the Exchange Act:
Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: | ||
Common Stock, $0.001 par value | SDPI | NYSE American |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.01 Completion of Acquisition or Disposition of Assets.
On December 7, 2020, Superior Drilling Products, Inc. (the “Company”) completed the transactions contemplated by its previously announced sale-leaseback agreement for its headquarters and manufacturing facilities in Vernal, Utah.
The Company sold the property for $4.5 million and simultaneously entered into a 15-year lease. After fees, the Company received approximately $4.2 million in net proceeds of which $2.6 million was used to repay its outstanding mortgage on the property. Lease terms are for monthly payments that are $17 thousand less than current mortgage debt service.
Item 8.01 Other Events.
On December 7, 2020, the Company issued a press release announcing the closing of the sale-leaseback transactions. A copy of the press release is filed herewith as Exhibit 99.1.
On December 9, 2020, the Company issued a press release announcing that it has been awarded the AS9100D with ISO 9001:2015 certification for its quality management systems (QMS) and for meeting QMS requirements specific to the aviation, space and defense industry. ISO 9001:2015 is an international QMS standard developed and published by the International Organization for Standardization. AS9100D is an international QMS standard published by the Society of Automotive Engineers (SAE). The standards are based on several quality management principles, including an outlined process-based method, strong customer focus, and involvement of upper-level company leadership. Organizations worldwide use the standard to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements. A copy of the press release is filed herewith as Exhibit 99.2.
Item 9.01. Financial Statements and Exhibits.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: December 9, 2020
SUPERIOR DRILLING PRODUCTS, INC. | |
/s/ Christopher D. Cashion | |
Christopher D. Cashion | |
Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Superior Drilling Products, Inc. Improves Liquidity with
Completed Sale-Leaseback Transaction
VERNAL, UT, December 7, 2020 — Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the “Company”), an innovator and manufacturer of drilling tool technologies, today announced that it has completed the sale-leaseback agreement for its facilities in Vernal, Utah, netting the Company $1.6 million of additional cash.
Under the terms of the transaction, which were previously announced on November 12, 2020, SDP sold its facilities for $4.5 million and simultaneously entered into a 15-year lease. After fees, the Company received approximately $4.2 million in net proceeds of which $2.6 million was used to repay its outstanding mortgages. Lease terms are for monthly payments that are $17 thousand less than current mortgage debt service.
About Superior Drilling Products, Inc.
Superior Drilling Products, Inc. is an innovative, cutting-edge drilling tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling industry. The Company designs, manufactures, repairs and sells drilling tools. SDP drilling solutions include the patented Drill-N-Ream® well bore conditioning tool and the patented Strider™ oscillation system technology. In addition, SDP is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for a leading oil field service company. SDP operates a state-of-the-art drill tool fabrication facility, where it manufactures its solutions for the drilling industry, as well as customers’ custom products. The Company’s strategy for growth is to leverage its expertise in drill tool technology and innovative, precision machining in order to broaden its product offerings and solutions for the oil and gas industry.
Additional information about the Company can be found at: www.sdpi.com.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements and information that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this release, including, without limitations, the continued impact of COVID-19 on the business, the Company’s strategy, future operations, success at developing future tools, the Company’s effectiveness at executing its business strategy and plans, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management, and ability to outperform are forward-looking statements. The use of words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project”, “forecast,” “should” or “plan, and similar expressions are intended to identify forward-looking statements, although not all forward -looking statements contain such identifying words. These statements reflect the beliefs and expectations of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the duration of the COVID-19 pandemic and related impact on the oil and natural gas industry, the effectiveness of success at expansion in the Middle East, options available for market channels in North America, the deferral of the commercialization of the Strider technology, the success of the Company’s business strategy and prospects for growth; the market success of the Company’s specialized tools, effectiveness of its sales efforts, its cash flow and liquidity; financial projections and actual operating results; the amount, nature and timing of capital expenditures; the availability and terms of capital; competition and government regulations; and general economic conditions. These and other factors could adversely affect the outcome and financial effects of the Company’s plans and described herein. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
-MORE- |
Superior Drilling Products, Inc. Improves Liquidity with Completed Sale-Leaseback Transaction
December 7, 2020
Page 2 of 2
For more information, contact investor relations:
Deborah K. Pawlowski
Kei Advisors LLC
(716) 843-3908
dpawlowski@keiadvisors.com
-END- |
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Exhibit 99.2
NEWS RELEASE |
1583 S. 1700 E. ● Vernal, UT 84078 ● (435)789-0594
FOR IMMEDIATE RELEASE
Superior Drilling Products, Inc. Achieves AS9100D with ISO 9001:2015 Certification for Quality Management Systems
Expands revenue opportunities with ability to manufacture products for aerospace and defense customers
VERNAL, UT, December 9, 2020 — Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the “Company”), an innovator and manufacturer of drilling tool technologies, today announced that it has been awarded the AS9100D with ISO 9001:2015 certification for its quality management systems (QMS) and for meeting QMS requirements specific to the aviation, space and defense industry.
Troy Meier, Chairman and CEO of SDP commented, “Superior Drilling Products has always had an intent focus on delivering quality. The ISO 9001 certification is validation of our ability to consistently deliver to global quality standards and enables us to qualify as a supplier for a broader base of customers and industries. Of note, we achieved the AS9100D certification which establishes additional requirements for critical industries that expand our addressable market. The certification furthers our commitment to our customers to practice repeatable, reliable, and continuously improving processes that deliver world-class products.”
ISO 9001:2015 is an international QMS standard developed and published by the International Organization for Standardization. AS9100D is an international QMS standard published by the Society of Automotive Engineers (SAE). The standards are based on several quality management principles, including an outlined process-based method, strong customer focus, and involvement of upper-level company leadership. Organizations worldwide use the standard to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements.
About Superior Drilling Products, Inc.
Superior Drilling Products, Inc. is an innovative, cutting-edge drilling tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling industry. The Company designs, manufactures, repairs and sells drilling tools. SDP drilling solutions include the patented Drill-N-Ream® well bore conditioning tool and the patented Strider™ oscillation system technology. In addition, SDP is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for a leading oil field service company. SDP operates a state-of-the-art drill tool fabrication facility, where it manufactures its solutions for the drilling industry, as well as customers’ custom products. The Company’s strategy for growth is to leverage its expertise in drill tool technology and innovative, precision machining in order to broaden its product offerings and solutions for the oil and gas industry.
Additional information about the Company can be found at www.sdpi.com.
-MORE-
Superior Drilling Products, Inc. Achieves AS9100D with ISO 9001:2015 Certification for Quality Management Systems
December 9, 2020
Page 2 of 2
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements and information that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this release, including, without limitations, the ability to expand into the aerospace, space and defense industries, add new customers in these new industries and consistently achieving the QMS standards are forward-looking statements. The use of words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project”, “forecast,” “should” or “plan, and similar expressions are intended to identify forward-looking statements, although not all forward -looking statements contain such identifying words. These statements reflect the beliefs and expectations of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the duration of the COVID-19 pandemic and related impact on the oil and natural gas industry, the effectiveness of success at expansion in the Middle East, options available for market channels in North America, the deferral of the commercialization of the Strider technology, the success of the Company’s business strategy and prospects for growth; the market success of the Company’s specialized tools, effectiveness of its sales efforts, its cash flow and liquidity; our ability to maintain our NYSE American listing; financial projections and actual operating results; the amount, nature and timing of capital expenditures; the availability and terms of capital; competition and government regulations; and general economic conditions. These and other factors could adversely affect the outcome and financial effects of the Company’s plans and described herein. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
For more information, contact investor relations:
Deborah
K. Pawlowski
Kei Advisors LLC
(716) 843-3908
dpawlowski@keiadvisors.com
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