GeoMet, Inc. Announces Stockholder Approval of Rights Offering and Record Date for Rights Offering
Houston, Texas – July 20, 2010 - GeoMet, Inc. (NASDAQ: GMET) (the “Company”) announced that the proposals submitted to a vote of its stockholders at the Special Meeting held today relating to its proposed rights offering and the investment agreement with Sherwood Energy, LLC were overwhelmingly approved.
The Company also announced that it has declared July 26, 2010 as the Record Date (the “Rights Offering Record Date”) for its Series A Convertible Redeemable Preferred Stock (“Preferred Stock”) rights offering (the “Rights Offering”).
Stockholders as of the close of trading on the Rights Offering Record Date (“Record Date Stockholders”) will be distributed a freely-tradable right (each a “Right” and collectively the Rights”) to purchase one share of Preferred Stock for approximately every 9.87 shares of common stock they own at a purchase price of $10.00 per share.
The Company intends to begin distributing the Rights to the Record Date Stockholders on July 29, 2010. The Rights Offering will terminate on August 18, 2010, unless extended.
The Company filed a registration statement on Form S-3 with the Securities and Exchange Commission on November 18, 2009 that registers the Preferred Stock underlying the Rights which was declared effective on December 8, 2009. Record Date Stockholders will be provided with a prospectus supplement and prospectus at the time the Rights are distributed.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of GeoMet, Inc. nor shall there be any sale of such securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended.
The Company anticipates the following important dates for the Rights Offering. These dates are subject to change, and you should review the prospectus, when available, to determine the actual dates related to the Rights Offering.
Last day to buy common stock and receive Rights July 21, 2010 (1)
Common stock begins trading ex-Rights July 22, 2010 (1)
Record Date July 26, 2010
Subscription period July 29, 2010 through August 18, 2010(2)
Rights eligible for trading July 29, 2010
Last day Rights to be traded August 18, 2010 (2)
(1) Assumes three day settlement.
(2) Unless extended.
Forward-Looking Statements Notice
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements. In addition, the Company cannot assure that it will be successful in obtaining additional financing on the terms outlined in this press release or otherwise. Careful consideration should be given to the risk factors and other cautionary statements included in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. GeoMet undertakes no duty to update or revise these forward-looking statements.
About GeoMet, Inc.
GeoMet, Inc. is an independent energy company primarily engaged in the exploration for and development and production of natural gas from coal seams (“coalbed methane”) and non-conventional shallow gas. Our principal operations and producing properties are located in the Cahaba Basin in Alabama and the Central Appalachian Basin in West Virginia and Virginia. We also control coalbed methane and oil and gas development rights, principally in Alabama, British Columbia, Virginia, and West Virginia.
For more information please contact Stephen M. Smith at (713)287-2251 (firstname.lastname@example.org), John Baldissera with BPC Financial at (800)368-1217, or visit our website at www.geometinc.com.