Target Hospitality Announces Closing of Warrant Exchange Offer

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Dec 22, 2022, 16:15 ET

THE WOODLANDS, Texas, Dec. 22, 2022 /PRNewswire/ -- Target Hospitality Corp. ("Target Hospitality," "Target" or the "Company") (Nasdaq: TH), one of North America's largest providers of vertically-integrated modular accommodations and value-added hospitality services, today announced the closing of its previously announced exchange offer (the "Offer") relating to its outstanding warrants (the "Warrants").

Under the terms of the Offer, each Warrant holder had the opportunity to receive 0.37 shares of Target Common Stock, par value $0.0001 per share ("Common Stock"), for each Warrant tendered by the holder and exchanged pursuant to the Exchange Offer. As of the expiration of the Offer on December 16, 2022 at 11:59 p.m., Eastern Time, 8,097,893 outstanding Warrants (including 369,471 Warrants tendered through guaranteed delivery) were properly tendered and not withdrawn in the Offer, representing approximately 50.1% of the Warrants. Pursuant to the terms of the Offer, Target issued 2,996,201 shares of Common Stock in exchange for such Warrants.

Following the closing of the Offer, 8,068,656 Warrants remain outstanding.

Cautionary Statement Regarding Forward Looking Statements

Certain statements made in this press release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: the duration of the COVID-19 pandemic or any future public health crisis, related economic repercussions and the resulting negative impact to global economic demand; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees and customers, government imposed mandates, contract and supply chain disruptions; operational, economic, including inflation, political and regulatory risks; our ability to effectively compete in the specialty rental accommodations and hospitality services industry; effective management of our communities; natural disasters and other business distributions including outbreaks of epidemic or pandemic disease; the effect of changes in state building codes on marketing our buildings; changes in demand within a number of key industry end-markets and geographic regions; our reliance on third party manufacturers and suppliers; failure to retain key personnel; increases in raw material and labor costs; the effect of impairment charges on our operating results; our future operating results fluctuating, failing to match performance or to meet expectations; our exposure to various possible claims and the potential inadequacy of our insurance; unanticipated changes in our tax obligations; our obligations under various laws and regulations; the effect of litigation, judgments, orders, regulatory or customer bankruptcy proceedings on our business; our ability to successfully acquire and integrate new operations; global or local economic and political movements, including any changes in policy under the Biden administration; federal government budgeting and appropriations; our ability to effectively manage our credit risk and collect on our accounts receivable; our ability to fulfill Target Hospitality's public company obligations; any failure of our management information systems; our ability to meet our debt service requirements and obligations; and risks related to our outstanding obligations in connection with the 9.50% senior notes due 2024. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Target Hospitality

Headquartered in the Woodlands, Texas, Target Hospitality is the holding company for the Target Logistics Management, LLC family of companies. Target Hospitality trades on Nasdaq under the ticker symbol "TH" and is one of North America's largest providers of vertically integrated specialty rental and value-added hospitality services. Target Hospitality provides vertically integrated specialty rental and comprehensive hospitality services including: catering and food services, maintenance, housekeeping, grounds-keeping, security, health and recreation services, overall workforce community management, and laundry service. Target Hospitality serves clients in energy and natural resources and government sectors principally located in the West Texas, South Texas, Oklahoma and Midwest regions.

Contact Information
Mark Schuck
(832) 702 – 8009
[email protected]

SOURCE Target Hospitality