Sabilis Energy announced two strategic transactions that will expand its presence in the distributed liquefied natural gas and compressed natural gas markets in Mexico. Stabilis has completed the acquisition of privately held Diversenergy, LLC and its subsidiaries to create one of the leading distributed LNG marketing and distribution companies in Mexico, the company said in a statement. In addition, Stabilis has completed the formation of a joint venture with Grupo CLISA and other former owners of Diversenergy to pursue investments in LNG and CNG assets in Mexico.
Chart Industries (GTLS) announced a strategic investment in Stabilis Energy (SLNG) of up to $7M for up to 9% of common equity. The transaction is scheduled to close within the next thirty days subject to both parties meeting certain closing conditions. The actual investment and ownership will be determined by an agreed upon formula at closing. "We are pleased to announce this strategic investment in Stabilis Energy. We look forward to providing equipment and process to Stabilis and other customers as they expand in the small-scale and utility-scale LNG market. We expect over $650 million of opportunity in this market for our products in the next three years," said Jill Evanko, CEO of Chart. James Reddinger, President and CEO of Stabilis, said, "As a global market leader in LNG production equipment and process systems, we appreciate Chart's confidence in us. This transaction better positions Stabilis to pursue our North American small-scale LNG growth strategy, which is currently focused on plant development opportunities in the United States and Mexico. Chart's investment will increase our publicly traded float and total shares outstanding, thereby helping Stabilis meet its NASDAQ listing requirements. Furthermore, the investment will reduce our financial leverage and give us a stronger balance sheet to support our growth plans."
Stabilis Energy announced that it received a staff determination letter from the listing qualifications department of The Nasdaq Stock Market LLC on July 30, 2019 setting forth a determination to delist the company's common stock from the Nasdaq Stock Market as a result of the company's inability to satisfy Nasdaq Listing Rule 5505a2, which requires a minimum of 1,000,000 publicly held shares, and Nasdaq Listing Rule 5505b1B, which requires a minimum market value of $15M in publicly held shares. Upon the completion of the share exchange of the company with Stabilis Energy LLC and its subsidiaries on July 26, 2019, which resulted in a change of control of the company, the company did not satisfy all of the applicable Nasdaq standards to complete the Nasdaq initial listing process. The company intends to request a hearing with a Nasdaq hearings panel to appeal the staff's delisting determination and request an extension to allow the company to meet all the applicable listing standards in accordance with a compliance plan it will present. The company intends to pursue certain actions outlined in its compliance plan to increase the number of publicly held shares as soon as practical to meet the applicable listing requirements; however, there can be no assurances that the company will be able to do so within the period of time that may be granted by the hearings panel.
Stabilis Energy f/k/a American Electric Technologies (AETI) announced that the share exchange transaction with Stabilis Energy LLC and its subsidiaries was completed on July 26, 2019. The Transaction and its related proposals, including a company name change and a reverse stock split, were approved by American Electric's stockholders at a Special Meeting of Stockholders on July 17, 2019. As of today, the company will operate under the name Stabilis Energy, Inc. and its common stock will commence trading on the Nasdaq Capital Market under the ticker symbol "SLNG". In addition, the company's shares outstanding will reflect a one-for-eight reverse split. As a result of the reverse stock split, every eight shares of American Electric common stock outstanding immediately prior to the reverse stock split was combined into one share of Stabilis Energy, Inc. common stock. No fractional shares are being issued in connection with the reverse stock split. In lieu of fractional shares, cash will be issued based on the closing price of American Electric common stock on the Nasdaq Capital Market on July 26, 2019. As a result of the completion of the share exchange, the former holders of Stabilis Energy LLC and its subsidiaries own 90% of the combined company and the former American Electric stockholders own 10% of the combined company. Approximately 14,645,917 shares of Stabilis Energy, Inc. common stock are issued and outstanding as a result of the completion of the share exchange and reverse stock split. The new CUSIP number is 85236P 101. Stabilis Energy, Inc. operates under the leadership of James Reddinger as President and CEO and Andrew Puhala as CFO. Casey Crenshaw serves as the Executive Chairman. The board of directors is comprised of nine members, including: Casey Crenshaw, James Reddinger, James Aivalis, Will Crenshaw, Ben Broussard, Arthur Dauber, Mushahid Khan, Edward Kuntz and Peter Mitchell. Messrs. Khan, Kuntz and Mitchell are independent directors and will constitute the Audit Committee.