Drilling Tools International Holdings and ROC energy Acquisition announced completion of their business combination. The combined company will operate as Drilling Tools International. ROC Energy shareholders approved the deal two weeks ago.
DTI's common stock began trading today on the nasdaq under the symbol DTI.
The company manufactures and provides a rental-focused offering of tools for use in horizontal and directional drilling.
The transaction generated $25.9 million of cash from a common stock pipe and $1.7 million of cash from ROC's trust account, after shareholder redemptions.
Existing DTI shareholders opted to reinvest $10.8 million of the cash they were to receive from the merger into a common stock PIPE, and affiliates of ROC's sponsor reinvested the $4.1 million owed to them under convertible promissory notes into the PIPE.
A portion of the net proceeds of the transaction was used to repay all amounts outstanding under DTI's revolving credit facility, leaving DTI with zero indebtedness under that facility at closing. Read more.