LITTLETON, Colo., August 19, 2004 — ADA-ES, Inc. announced that the company completed a private placement of one million shares of its common stock at $8.00 per share with a group of institutional investors. Net proceeds of the financing were $7.6 million.
The shares have a lock-up period of 90 days and carry certain “piggy-back” and other registration rights. Pritchard Capital Partners served as the placement agent.
Dr. Michael Durham, President of ADA-ES, stated, “This capital infusion significantly strengthens our balance sheet, which will serve as a solid foundation for providing guarantees and cash for winning and executing on new contracts. As a result, we believe that this transaction better positions the Company to capitalize on the opportunities in the mercury emission control industry, which are emerging from certain State consent decrees and regulations, the development of several new coal-fired power plants and pending Federal regulations.
“This transaction also expands our institutional shareholder base with the addition of several prestigious investors that have significant holdings in other energy companies. The equity investment also provides the basis for meeting the listing qualifications of the Nasdaq Small Cap Market, which we plan to pursue in the near-term.”
Headquartered in Littleton, Colorado, ADA-ES, Inc. develops and implements proprietary environmental technology and specialty chemicals that mitigate the environmental impact from electric power and industrial companies while reducing operating costs.