EX-99.1
2
ex99-1.htm
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-

EX - 99 . 1 2 ex99 - 1 . htm 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 -