KENT, Wash., Oct. 26 /PRNewswire-FirstCall/ -- Flow International
Corporation (Nasdaq: FLOW), the world's leading developer and manufacturer
of industrial waterjet machines used for cutting and cleaning applications
around the world, announced that it has repurchased the last outstanding
warrants from its March 2005 Private Investment Public Equity (PIPE)
transaction. The Company repurchased the remaining warrants in a privately
negotiated transaction with certain funds managed or advised by Third Point
LLC, which collectively represent Flow's largest shareholder.
The remaining warrants gave the Third Point funds the right until March
of 2010 to purchase 403,300 of the Company's common stock at an exercise
price of $4.07 per share. The Company repurchased the warrants in
connection with its previously announced program to repurchase up to $45
million of its securities. The warrants were repurchased with cash at a
price of $7.43 per warrant for an aggregate purchase price of approximately
$3.0 million.
Under the terms of the PIPE Transaction, the Company was obligated to
file and keep effective a registration statement on Form S-1 for the resale
of the shares issued in the PIPE Transaction, as well as the shares
issuable upon exercise of the warrants. The Third Point funds were the last
holders of warrants issued in the PIPE Transaction; all other warrants had
been converted. The Company's obligation to keep the registration statement
effective could have continued until February 22, 2011. Failure to keep the
registration statement continuously effective would have resulted in
penalties of approximately $150,000 per month to the Third Point funds.
With the repurchase of the warrants, the Company will now no longer be
obligated to keep the registration statement effective.
About Flow International
Flow International Corporation is the world's leading developer and
manufacturer of ultrahigh-pressure waterjet cutting technology to
industries including automotive, aerospace, job shop, surface preparation,
and more. For more information, visit http://www.flowcorp.com.
Contact: Flow Investor Relations
253-813-3286
SOURCE Flow International
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Related links:
http://www.flowcorp.com
CONTACT:
Flow Investor Relations, +1-253-813-3286
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