Dawson Production Services Adopts New Shareholder Rights Agreement.SAN ANTONIO--(BUSINESS WIRE)--Sept. 17, 1997--Dawson Production Services Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DPSI DPSI Diploma in Public Service Interpreting DPSI Dots Per Square Inch DPSI Dynamic Process Solutions, Incorporated DPSI Data Partitioned Secondary Index ) today announced its Board of Directors has adopted a Shareholder Rights Agreement. "This Rights Agreement was adopted to deter abusive Tending to deceive; practicing abuse; prone to ill-treat by coarse, insulting words or harmful acts. Using ill treatment; injurious, improper, hurtful, offensive, reproachful. takeover tactics that could be used to prevent our shareholders from realizing the full value of their investment in the Company," stated Michael E. Little, Chairman, President and Chief Executive Officer. The Agreement was not adopted in response to any specific attempt to acquire control of the Company. "In the best interests of the Company and its shareholders, this Rights Agreement is not intended to prevent a takeover of the Company at a fair price," continued Little. "Even so, it may cause substantial dilution to a person or group that acquires 15 percent or more of the Company's Common Stock, without prior Board approval. The Rights can be redeemed by the Company for $.01 per Right in cash. "By adopting the Rights Agreement and the recently announced share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, the Board of Directors affirms its commitment to pursue its goal of maximizing shareholder value," continued Little. "The adoption of the Rights Agreement by the Board of Directors does not weaken the Company's financial strength or interfere with its business plans in any way. The Rights Agreement has no effect on reported earnings per share and does not change the way in which the Company's stock is traded. Also, the issuance of the Rights has no dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). and is not taxable to the Company or to its shareholders. A letter to shareholders regarding the Rights Agreement and a summary of terms of the Rights Agreement will be mailed to shareholders very soon." The Rights Agreement was adopted effective September 11, 1997, applicable to shareholders of record as of September 22, 1997. Until an event triggers the Rights Agreement, (i) the Rights will be evidenced by the Common Stock certificates and will be transferred with and only with such Common Stock certificates, (ii) new Common Stock certificates issued after the Record Date will contain a notation notation: see arithmetic and musical notation. How a system of numbers, phrases, words or quantities is written or expressed. Positional notation is the location and value of digits in a numbering system, such as the decimal or binary system. incorporating the Rights Agreement by reference, and (iii) the surrender for transfer of any certificates for Common Stock outstanding will also constitute the transfer of the Rights associated with the Common Stock represented by such certificate. Dawson Production Services Inc. is a San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , Texas-based diversified energy services company providing workover rig services, liquid services, and production services to oil and gas operators. Workover rig services are comprised of the completion, maintenance, workover, and plugging and abandonment of oil and gas wells. Liquid services are comprised of vacuum truck services, frac tank rentals and salt water injection services that provide an integrated mix of liquid services to well site customers. Production services are comprised of production testing services, slickline wireline services, fishing and rental tool services and pipe testing that perform the deliverability tests required upon the initial completion of wells. The Company operates from 34 locations concentrated primarily in the Texas and Louisiana Gulf Coasts, the Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. areas of West Texas and New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). , and California. CONTACT: Dawson Production Services, San Antonio P. Mark Stark, 210/476-0420 or Easterly Investor Relations Investor relations The process by which the corporation communicates with its investors. , Houston Ken Dennard, 713/529-6600 |
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