ROC Energy Acquisition Corp. (ROC) Completes Drilling Tools International Deal
by Marlena Haddad on 2023-06-20 at 3:53pm

ROC Energy Acquisition Corp. (NASDAQ:ROC) announced this afternoon that it has completed its business combination with oilfield services company Drilling Tools International (“DTI”).

The transaction generated $25.9 million of cash from a common stock PIPE and $1.7 million of cash from ROC’s trust account, considering redemptions.

Additionally, existing DTI shareholders chose to reinvest $10.8 million of the cash they were to receive in the merger into the common stock PIPE, and affiliates of ROC’s sponsor reinvested the $4.1 million owed to them under convertible promissory notes into the common stock PIPE.

The total PIPE transaction amounted to $40.8 million, including meaningful participation by Fifth Partners, an affiliate of ROC’s sponsor, as well as DTI’s existing preferred shareholders. A portion of the net proceeds was used to fully repay DTI’s revolving credit facility, resulting in zero debt under that facility at closing.

The $319 million deal was originally approved by shareholders during a special meeting held on June 1, but at that time, ROC Energy did not provide a timeline for the closing. Over 83% of the votes cast on the business combination proposal at the meeting were in favor of approving the transaction.

On that same day, the SPAC also held an extension meeting where shareholders approved a proposal to extend the completion deadline from June 6 to August 6, composed of two one-month extensions.

Starting on June 21, DTI’s common stock will trade on the Nasdaq under the symbol “DTI”. The combined company  hopes to utilize the public listing to further pursue its strategic consolidation opportunities within the small-cap oilfield services market. It will continue to be led by CEO Wayne Prejean, and CFO David Johnson, alongside the rest of the current DTI management team.

ROC Energy inked the business combination with DTI earlier this year in February. ROC Energy brought about $209 million into the deal through its trust and originally supplemented this with a $45 million PIPE. Houston, Texas-based DTI manufactures and provides a differentiated, rental-focused offering of tools used for horizontal and directional drilling.


Recent Posts
by Kristi Marvin on 2023-11-25 at 11:45am

Terms Tracker for the Week Ending November 24, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. This being the Thanksgiving holiday week, we are thankful for a lot of things, but mostly that 2023 is almost over. It’s been a rough...

by Nicholas Alan Clayton on 2023-11-24 at 7:35am

At the SPAC of Dawn Though perhaps stuffed to the brim, SPAC activity continues this Thanksgiving Friday with votes by Clean Earth and Zalatoris to extend a deadline and amend trust contributions, respectively. At least seven de-SPACs are also reporting earnings today and will do so going into a futures market that is mostly green...

by Marlena Haddad on 2023-11-22 at 9:45am

IB Acquisition Corp. submitted its S-1 filing Friday afternoon for a $100 million IPO, coming right on the heels of Bayview Acquisition Corp, which also filed its S-1 that day. IB is also similar to Bayview in that its units do not feature a warrant but include 1 right for 1/10. However, its trust is slightly...

by Nicholas Alan Clayton on 2023-11-22 at 8:53am

Integrated Wellness (NYSE:WEL) announced in an 8-K filing that it agreed to transfer control of its sponsor to Sriram Associates, which will now take on the SPAC’s financial obligations and may appoint a new team. Sriram is acquiring 2,012,500 promote shares (70%) and 4,795,000 private placement warrants (70%) for the nominal purchase price of $1....

by Nicholas Alan Clayton on 2023-11-22 at 7:45am

At the SPAC of Dawn So far, seven SPACs have announced their liquidations this week and although some others may choose to use the holiday to quietly disband, this tends to be a positive week for equities in general. Going back to 1961, the S&P 500 has ended the Thanksgiving week with gains three-quarters of...


Copyright © 2023 SPACInsider, Inc. All Rights Reserved