Underground Solutions Announces Completion of $12.5 Million Private Placement
Poway, CA (December 10, 2007) - Underground
Solutions, Inc. (Pink Sheets: UGSI) announced today that it had
completed a $12.5 million private placement of common stock at a
price of $0.22 per share. The transaction closed on December
7th. The Company issued and sold approximately 56.8
million shares in the offering, bringing its total outstanding
shares on a fully-diluted basis to approximately 708 million. All
of the shares were purchased by the Switzerland-based Pictet
Asset Management, an asset management group with over $125
billion under management. Pictet's Water Sector Fund is the
largest in the world with over $6 billion invested globally in
water-related assets. The sale price of the shares was almost
three times higher than the $0.08 per share price at which the
Company last issued common stock in January, 2006.
The Company indicated that the funds raised in the offering will
be used primarily to fund its growth, including purchase of
capital equipment, hiring new employees, research and development
expenditures, and other general corporate purposes.
Andy Seidel, the Company's Chairman and Chief Executive Officer,
stated, "Pictet's investment is a vote of confidence by a
sophisticated, highly-respected, global investor that understands
the water space very well. This investment validates the actions
that we have taken during the two years since the current
management team joined Underground Solutions to build a strong
market presence through rapid expansion. The proceeds of this
offering will allow us to continue to expand our North American
business at a rapid pace. Moreover, it will provide us with the
opportunity to add to our current research and development
activities keeping us at the forefront of fusible polyvinyl
chloride pipe and fittings technologies. We are honored to have
Pictet as a stockholder of Underground Solutions."
Caris & Company was retained to act as Underground Solutions™
financial advisor on the transaction. Janney Montgomery Scott
LLC served as placement agent.
Underground Solutions provides infrastructure technologies for
water and sewer applications as well as conduit for applications
ranging from electrical to fiber optics. UGSI's Fusible PVC™
products, including Fusible C-900®, Fusible C-905®, and FPVC®,
contain a proprietary PVC formulation that, when combined with
UGSI's patented fusion process, results in a monolithic,
fully restrained, gasket-free, leak-free piping system.
Duraliner™ is a patented, close-fit pipeline renewal system that
creates a stand-alone, pressure-rated structural liner.
Certain statements in this news release contain forward-looking
information within the meaning of the Private Securities
Litigation Act of 1995. Such forward-looking statements involve
certain risks, assumptions and uncertainties, including the
inability to generate and secure the necessary product sales, or
the lack of acceptance of the Company's products by potential
customers. In each case actual results may differ materially from
such forward-looking statements. The Company does not undertake
to publicly update or revise its forward-looking statements even
if experience or future changes make it clear that any projected
results will not be realized.
Contact Information: Steve Stanczak of Underground Solutions,
Inc.; phone: 760/690-3849; email: info@undergroundsolutions.com