Oct. 24, 2011
/PRNewswire/ -- As previously announced, Dawson Geophysical Company (
) (NASDAQ: DWSN) and TGC Industries, Inc. (TGC) (NASDAQ: TGE) entered into a definitive merger agreement pursuant to which
will acquire TGC in a tax-free stock-for-stock transaction.
The Board of Directors of each of
and TGC approved on
March 20, 2011
the merger agreement and recommends that each of their respective shareholders vote "
" the proposals to be voted on at the special meetings approving the transaction.
Pursuant to the terms of the merger agreement, one of the conditions to closing is that the average of the volume weighted average price (or VWAP) of
common stock on the NASDAQ during the 10 consecutive trading days ending on
October 25, 2011
be equal to or greater than
but less than or equal to
. As of
October 21, 2011
(the end of the 8th trading day of the 10 trading day measurement period), the average of
's VWAP for the first 8 trading days of the measurement period was
Since it is unlikely that the 10-day average of
's VWAP on
October 25, 2011
will be within the designated range,
and TGC have exchanged letters reflecting their suggested changes to various terms of the merger agreement, including the exchange ratio. At this time, no changes have been agreed to by the parties. Pursuant to the terms of the merger agreement,
and TGC are required, during
and 27, 2011, to negotiate a possible adjustment to the exchange ratio. If the parties do not come to an agreement on a revised merger agreement, then either party may terminate the transaction at any time on or after negotiations end on
October 27, 2011
. There can be no assurance that any discussions will result in any adjustments to the existing terms of the merger agreement, including the exchange ratio.
and TGC do agree to revise the merger agreement,
and TGC will each publicly announce the revisions, will circulate a supplement to the joint proxy statement/prospectus previously sent to shareholders, and will adjourn their respective shareholder meetings to permit shareholders to revote their shares, if they choose to do so.
Regardless of the discussions noted above, the merger transaction cannot be consummated unless it is approved by
and TGC shareholders at their respective special meetings. Accordingly,
's board of directors recommends that
shareholders vote "FOR" approval of the issuance of shares of Dawson common stock to TGC shareholders pursuant to the merger agreement and TGC's board of directors recommends that TGC shareholders vote "FOR" approval of the merger agreement.
shareholders who have questions about the merger, or who need assistance in submitting their proxy or voting their shares, should contact the proxy solicitor, Morrow & Co., LLC, at (800) 607-0088 (banks and brokers call collect: (203) 658-9400).
TGC shareholders who have questions about the merger, or who need assistance in submitting their proxy or voting their shares, should contact the proxy solicitor,
at (800) 967-4617 (banks and brokers call collect: (212) 269-5550).
Dawson Geophysical Company is the leading provider of U.S. onshore seismic data acquisition services as measured by the number of active data acquisition crews. Founded in 1952,
acquires and processes 2-D, 3-D and multi-component seismic data solely for its clients, ranging from major oil and gas companies to independent oil and gas operators as well as providers of multi-client data libraries.
About TGC Industries
TGC Industries, Inc., based in
, is a provider of seismic data acquisition services with operations throughout the continental
. TGC has branch offices in
Cautionary Statement Regarding Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995,
and TGC caution that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may materially affect
's or TGC's actual results of operations. These risks include but are not limited to the volatility of oil and natural gas prices, dependence upon energy industry spending, disruptions in the global economy, industry competition, delays, reductions or cancellations of service contracts, high fixed costs of operations, external factors affecting
's or TGC's crews such as weather interruptions and inability to obtain land access rights of way, whether either company enters into turnkey or term contracts, crew productivity, limited number of customers, credit risk related to
's or TGC's customers, the availability of capital resources, operational disruptions, the ability to obtain all necessary approvals for the merger and whether the average of the volume weighted average price of
's common stock will be within the range specified in the merger agreement and if not, whether the parties can agree to a modified exchange ratio. A discussion of these and other factors, including risks and uncertainties with respect to
is set forth in
's Form 10-K for the fiscal year ended
September 30, 2010
's Form 10-Qs for the three months ended
June 30, 2011
and with respect to TGC, is set forth in TGC's Form 10-K for the fiscal year ended
December 31, 2010
and TGC's Form 10-Qs for the three months ended
June 30, 2011
. Dawson and TGC disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Important Information For Investors and Shareholders
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.