HUNTSVILLE, Texas, Feb. 12, 2018 /PRNewswire/ -- Mitcham
Industries, Inc. (NASDAQ: MIND) ("Mitcham") announced today that it
has completed the previously announced acquisition of intellectual
property and certain other assets from Hydroscience Technologies,
Inc. and Solid Seismic LLC. In connection with the closing of the
acquisition, Mitsubishi Heavy Industries, Ltd. ("Mitsubishi")
has made the initial investment pursuant to its agreement to
purchase up to $4.0 million of
Mitcham's 9.00% Series A Cumulative Preferred Stock (the "Preferred
Stock").
Rob Capps, Mitcham's Co-Chief
Executive Officer, stated, "We are pleased to announce the
completion of these agreements to expand our technology offerings
and further our relationship with Mitsubishi. In addition to the
investment by Mitsubishi, we will provide a variety of support
services related to equipment previously purchased by Mitsubishi.
The solid streamer and sensor technology that we have acquired has
extensive application in the oceanographic and hydrographic
industries, as well as traditional seismic applications. We
see clear opportunities to integrate some of this technology into
other areas such as anti-submarine warfare and maritime security
systems. The completion of these agreements is an important step in
Mitcham's strategy to reposition itself as a more significant
player in the marine technology industry and allows us to further
diversify from the oil and gas exploration industry."
Hydroscience and its affiliate, Solid Seismic LLC, designed,
manufactured and sold marine sensors and solid streamer technology
primarily for the hydrographic and seismic industries. The
companies filed for bankruptcy protection in April 2017.
Mitcham acquired the assets pursuant to an Asset Purchase Agreement
and Sale Order that were approved by the bankruptcy court on
January 31, 2018. Under these
agreements, Mitcham acquired certain specified intangible and
tangible assets free and clear of all prior claims and
encumbrances. Mitcham assumed no contracts or prior warranty
obligations.
In connection with the closing of the acquisition, Mitcham has
issued 152,290 shares of Preferred Stock to Mitsubishi for proceeds
of $3.5 million pursuant to a
securities purchase agreement between Mitcham and Mitsubishi.
In addition, Mitsubishi has agreed to purchase an additional 21,756
shares of Preferred Stock for $500,000 upon the satisfaction of certain
conditions specified in the securities purchase agreement.
Mitcham expects to satisfy these conditions during the fiscal year
ending January 31, 2019.
The Preferred Stock sold under the securities purchase agreement
has not been registered under the Securities Act of 1933, as
amended (the "Securities Act"), or any state securities laws, and
may not be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements of the Securities Act and applicable
state securities laws. This press release shall not constitute an
offer to sell or a solicitation of an offer to buy the securities
described above.
About Mitcham Industries
Mitcham Industries, Inc. provides technology to the
oceanographic, hydrographic, defense, seismic and security
industries. Headquartered in Huntsville, Texas, Mitcham has a global
presence with operating locations in the
United States, Canada,
Australia, Singapore, Russia, Hungary, Colombia and the United Kingdom. Mitcham's worldwide Equipment
Manufacturing and Sales Segment, which includes its Seamap and
Klein Marine Systems units, designs, manufactures and sells
specialized, high performance, marine sonar and seismic equipment.
Through its Leasing Segment, Mitcham believes it is the largest
independent provider of exploration equipment to the seismic
industry.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Mitcham believes that
its expectations and forecasts are based on reasonable assumptions.
No assurance, however, can be given that such expectations and
forecasts will prove to have been correct. A number of
factors could cause actual results to differ materially from the
expectations, anticipated timing or other forward-looking
information expressed in this press release. You should read our
filings with the U.S. Securities and Exchange Commission, including
our Annual Report on Form 10-K for the year ended January 31, 2017, and our most recent Quarterly
Reports and Current Reports for a more extensive list of factors
that could affect results, which are available on Mitcham's
Investor Relations website at www.mitchamindustries.com or on the
SEC's website at www.sec.gov.
Contacts:
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Rob Capps,
Co-CEO
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Mitcham Industries,
Inc.
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936-291-2277
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Jack Lascar / Mark
Roberson
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Dennard Lascar
Investor Relations
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713-529-6600
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SOURCE Mitcham Industries, Inc.