Business
Smart Sand, Inc. Enters Into $35 Million Settlement With U.S. Well Services, LLC
THE WOODLANDS, Texas, June 29, 2021 (GLOBE NEWSWIRE) -- Smart Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”) announced today that it has reached a
About this update from Smart Sand, Inc.
[{"type":"text","content":"THE WOODLANDS, Texas, June 29, 2021 (GLOBE NEWSWIRE) -- 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 sta...