Hudson Technologies Shelf Registration Statement Declared Effective By the SEC
Hudson Technologies, Inc. (NASDAQ: HDSN), a leading distributor and reclaimer of refrigerants as well as a provider of proprietary on-site decontamination services for large comfort and process cooling systems, announced today that its shelf registration statement on Form S-3 filed June 26, 2008, has been declared effective by the U.S. Securities and Exchange Commission.
The registration gives the Company the ability at any time over the next three years to offer and sell its securities covered by the registration statement, for proceeds in the aggregate amount of up to $30 million. The terms of any future offering(s) will be established at the time of the offering.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies stated, “Our Company has been a leader in the refrigerant reclamation marketplace for many years and we believe our industry is experiencing a unique inflection point. Our industry is preparing for the next federally mandated phase-out which will limit and eventually ban the production of new HCFC refrigerants. The phase-out is scheduled to commence in 2010 and we have been preparing for, and have already begun to see, an increase in the price per pound for HCFCs. We believe that in future periods, as the phase-out progresses, reclaimed HCFCs will fill the supply gap for those systems that require HCFCs to operate. As the supply of new HCFCs decreases and the need for reclaimed HCFCs increases, we expect to see growth in the sales price per pound and an increase in the volume of reclaimed HCFCs sold.”
Mr. Zugibe continued, “In anticipation of the imminent industry shift over the next several years, we have strengthened our management team, expanded our sales resources, and improved our reclamation facility in order to strategically position ourselves to capitalize on market opportunities as they arise. This shelf registration provides a potential resource in support of that strategic positioning. The reclamation industry is very fragmented and served by a number of reclamation companies around the country, many of which are regional operations. This shelf registration provides us more flexibility to potentially access capital as acquisition opportunities present themselves, or for working capital to aggressively purchase used refrigerant or pursue other market opportunities. It is important to note that the registration does not in any way obligate us to issue our securities at any time. Any use of the shelf offering will require approval by our board of directors with due consideration for our primary goals of providing strong returns and increasing shareholder value for existing shareholders.”
Any offering of securities covered by the registration statement will be made only by means of one or more prospectuses and prospectus supplements. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry. Hudson’s proprietary RefrigerantSide(R) Services increase operating efficiency and energy savings, and remove moisture, oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems. Performed at a customer’s site as an integral part of an effective scheduled maintenance program or in response to emergencies, RefrigerantSide(R) Services offer significant savings to customers due to their ability to be completed rapidly and at higher purity levels, and can be utilized while the customer’s system continues to operate. In addition, the Company sells refrigerants and provides traditional reclamation services to the commercial and industrial air conditioning and refrigeration markets. For further information on Hudson, please visit the Company’s web site at www.hudsontech.com.
Safe Harbor Statement under the Private Securities Litigation Act of 1995
Statements contained herein, which are not historical facts constitute forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the markets for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of refrigerants), the Company’s ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements which become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing and other risks detailed in the Company’s periodic reports filed with the Securities and Exchange Commission. The words “believe”, “expect”, “anticipate”, “may”, “plan”, “should” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.