Lawrence:
This announcement within the last hour may lend a little credence to your Theory 1. Since today it bounced above and below $3 on slightly lower volume it remains to be seen what the real cause is.
I hope it will climb a little more so I can make a little profit.
Jim
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PR Newswire, Thursday, April 10, 1997 at 16:16
LAWRENCEVILLE, N.J., April 10 /PRNewswire/ -- Envirogen, Inc. (ENVIROGEN)
(NASDAQ:ENVG) announced today that it has acquired Fluid Management, Inc.
(FMI) of Pewaukee, Wisconsin, pursuant to an Agreement and Plan of Merger
between the two companies providing for the merger of FMI into ENVIROGEN.
Financial terms of the acquisition include the payment by ENVIROGEN of
approximately $11 million in cash and the issuance of approximately
4.2 million shares of ENVIROGEN common stock.
ENVIROGEN also announced today the issuance and sale of approximately
6.1 million shares of ENVIROGEN common stock to Warburg, Pincus Ventures,
L.P., at an aggregate purchase price of $16 million. The net proceeds from
such financing were used to fund the cash portion of the merger consideration
and will also supplement the working capital of the combined enterprise.
The shares issued to the FMI stockholders and Warburg, Pincus Ventures
have the benefit of certain registration rights, but are restricted from
public resale for a period of one year from the date of closing.
Dr. Harch Gill, President and CEO of ENVIROGEN, said, "FMI's strength in
project management and on-site engineering along with its strong cash flow fit
exceptionally well with ENVIROGEN's technology-based environmental system and
service capabilities. Based on the substantial integration of the ENVIROGEN
and FMI businesses already accomplished, I am highly enthusiastic about the
prospects for the combined business. Clearly, each organization will
significantly expand the business opportunities of the other."
FMI is a full-service environmental consulting and engineering firm with
offices in Pewaukee, La Crosse, Ashwaubenon and Mosinee, Wisconsin, and
Geneva, Illinois. In 1996, FMI reported revenues of $21.6 million and pre-tax
income of $4.3 million.
ENVIROGEN is a leading technology-based environmental systems and services
company that provides solutions to industrial effluent and hazardous waste
remediation problems. The Company also designs and implements vapor
extraction and other integrated systems for the on-site treatment of organic
contaminants in soils and groundwater.
SOURCE Envirogen, Inc.
-0- 04/10/97
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