Smart Sand, Inc. Enters Into $35 Million Settlement With U.S. Well Services, LLC
29 June 2021 - 8:00PM
Smart Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”)
announced today that it has reached a settlement with U.S. Well
Services, LLC (“USW”), a subsidiary of U.S. Well Services, Inc.
(“USWS”), in connection with the approximate $50.9 million judgment
issued by the Superior Court of the State of Delaware in favor of
Smart Sand in its breach of contract case against USW. Under the
terms of the settlement, USW has paid to Smart Sand a $35.0 million
cash payment and USWS has entered into a two year Right of First
Refusal Agreement with Smart Sand covering all purchases of
Northern White frac sand by USWS and its affiliates in the
continental United States from January 1, 2022 through December 31,
2023.
Charles Young, Smart Sand’s Chief Executive
Officer, commented, “We are very pleased to have reached an
agreement with U.S. Well and bring this long running action to a
beneficial conclusion. This outcome makes our business stronger.”
Young continued, “The cash payment provides us with immediate
liquidity, enhancing our already strong balance sheet. The right of
first refusal agreement provides us with an opportunity to once
again sell sand to U.S. Well and increase our Northern White sales
volumes over the next two years. We are now free to focus
exclusively on our core business and believe that the future has
never been brighter for Smart Sand.”
About Smart Sand:
We are a fully integrated frac sand supply and
services company, offering complete mine to wellsite proppant
logistics, storage and management solutions to our customers. We
produce low-cost, high quality Northern White frac sand and offer
proppant logistics, storage and management solutions to our
customers through our in-basin transloading terminal and our
SmartSystems wellsite proppant storage capabilities. We provide our
products and services primarily to oil and natural gas exploration
and production companies and oilfield service companies. We own and
operate premium frac sand mines and related processing facilities
in Wisconsin and Illinois, which have access to three Class I rail
lines, allowing us to deliver products substantially anywhere in
the United States and Canada. For more information, please visit
www.smartsand.com.
Forward-looking Statements:
All statements in this news release other than
statements of historical facts are forward-looking statements that
contain the Company’s current expectations about our future
results. We have attempted to identify any forward-looking
statements by using words such as “expect,” “will,” “estimate,”
“believe” and other similar expressions. Although we believe that
the expectations reflected and the assumptions or bases underlying
our forward-looking statements are reasonable, we can give no
assurance that such expectations will prove to be correct. Such
statements are not guarantees of future performance or events and
are subject to known and unknown risks and uncertainties that could
cause our actual results, events or financial positions to differ
materially from those included within or implied by such
forward-looking statements.
Factors that could cause our actual results to
differ materially from the results contemplated by such
forward-looking statements include, but are not limited to,
fluctuations in product demand, regulatory changes, adverse weather
conditions, increased fuel prices, higher transportation costs,
access to capital, increased competition, continued effects of the
global pandemic, changes in economic or political conditions, and
such other factors discussed or referenced in the “Risk Factors”
section of the Company’s Annual Report on Form 10-K for the year
ended December 31, 2020, filed by the Company with the U.S.
Securities and Exchange Commission (“SEC”) on March 3, 2021, and in
the Company’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2021, filed by the Company with the SEC on May 4,
2021.
You should not place undue reliance on our
forward-looking statements. Any forward-looking statement speaks
only as of the date on which such statement is made, and we
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, changed circumstances or otherwise, unless required
by law.
Contact:
Josh JaynePhone: (281) 231-2660Email: jjayne@smartsand.com
Lee BeckelmanPhone: (281) 231-2660E-mail:
lbeckelman@smartsand.com
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