Document:

EX-10.1

 

Exhibit 10.1

Contacts:

	 	 	 
	W. Phillip Marcum

	 	Philip Bourdillon/Eugene Heller
	Chairman and CEO

	 	Silverman Heller Associates
	303-785-8080

	 	310-208-2550

METRETEK TECHNOLOGIES CALLS WARRANTS

FOR EXERCISE OR REDEMPTION

DENVER — January 20, 2006 — Metretek Technologies, Inc. (Amex: MEK) today announced that it
has exercised its right to call all outstanding and unexercised warrants to purchase the Company’s
common stock that were issued to investors in a May 2004 private placement. Under the terms of
these warrants, any warrants that remain outstanding and unexercised as of 6:30 p.m. Eastern
Standard Time on February 19, 2006, the call date, shall be redeemed at a price of $.01 per
warrant.

The Company has sent a written notice of redemption to holders of the warrants. Until the call
date and time, each outstanding warrant will continue to be exercisable for one share of common
stock at an exercise price of $3.41 per share. While the warrants are not publicly listed or
traded, the shares issuable upon exercise of the warrants are listed on the American Stock Exchange
and their resale by the warrant holders has been registered with the Securities and Exchange
Commission.

The amount of the cash proceeds that the Company will receive will depend upon the number of
warrants exercised for cash; if all outstanding warrants are exercised for cash, the Company will
receive proceeds of approximately $2.8 million. The Company intends to use the proceeds primarily
to repay its highest interest-rate bearing indebtedness and for general corporate purposes.

The Company’s right to call the warrants was triggered by the recent satisfaction of the conditions
to such right, including that the stock price has traded above 200% of the exercise price for 30
consecutive trading days, and that the volume of trading has exceeded an average of 100,000 shares
per trading day over that period. “We are pleased that the market has recognized our progress
since that private placement, as reflected in a stock price that has allowed us to accelerate the
exercise of these warrants and our receipt of the proceeds,” said W. Phillip Marcum, Metretek’s
chairman and CEO. The completion of the warrant call is conditioned upon these redemption
provisions continuing in effect until the call date.

Metretek Technologies, Inc. through its subsidiaries — PowerSecure, Inc.; Metretek, Incorporated;
and Southern Flow Companies, Inc. — is a diversified provider of energy technology products,
services and data management systems to industrial and commercial users and suppliers of natural
gas and electricity.

All forward-looking statements contained in this release are made within the meaning of and
pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are all statements other than statements of historical facts, including
statements concerning the amount of proceeds the Company may receive from the exercise of the
warrants and the sufficiency thereof for their intended purposes, and all other statements
concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and
strategies of management and statements of assumptions underlying the foregoing, and are often, but
not always, identified by words such as “may,” “expect,” “will,”

 

 

“should,” “believe,” “optimistic,” “anticipate,” “intend,” “hope” and similar terminology.
Forward-looking statements are not guarantees of future performance or events and are subject to a
number of known and unknown risks, uncertainties and other factors that could cause actual results
to differ materially from those expressed, projected or implied by such forward-looking statements,
including, but not limited to, the number of warrants actually exercised for cash, the conditions
to the warrant call remaining in effect until the call date, and other factors, risks and
uncertainties described from time to time in the Company’s reports and filings with the Securities
and Exchange Commission, including but not limited to Company’s most recently filed Annual Report
on Form 10-K and subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there can be no
assurance that the results expressed, projected or implied by any forward-looking statements will
be achieved, and readers are cautioned not to place undue reliance on any forward-looking
statements. The forward-looking statements in this press release speak only as of the date hereof
and are based on the current plans, goals, objectives, strategies, intentions, expectations and
assumptions of, and the information currently available to, management. The Company assumes no duty
or obligation to update or revise any forward-looking statements for any reason, whether as the
result of changes in expectations, new information, future events, conditions or circumstances or
otherwise.EX-10.2

 

Exhibit 10.2

METRETEK TECHNOLOGIES, INC.

303 East Seventeenth Avenue, Suite 660

Denver, Colorado 80203

Telephone: (303) 785-8080

Facsimile: (303) 785-8085

 

NOTICE OF REDEMPTION OF WARRANTS

 

REDEMPTION DATE: FEBRUARY 19, 2006

EXERCISE RIGHT EXPIRES: 6:30 P.M., NEW YORK CITY TIME

FEBRUARY 19, 2006

 

To the Holders of

Warrants Originally Issued May 3, 2004 by

Metretek Technologies, Inc.:

     NOTICE IS HEREBY GIVEN that, pursuant to the provisions of the Warrants originally issued on
May 3, 2004 (the “Warrants”), by Metretek Technologies, Inc., a Delaware corporation (the
“Company”), the Company hereby exercises its right to call the Warrants by requiring the exercise
of all of the outstanding and unexercised Warrants on or before 6:30 p.m., New York City time, on
February 19, 2006 (the “Call Date”). The Company shall have the right to repurchase, in cash, any
Warrants that remain outstanding and unexercised after the Call Date at a price equal to $.01 (the
“Call Price”) multiplied by the number of shares of common stock, par value $.01 per share (the
“Common Stock”), of the Company into which such unexercised Warrants would have been exercisable
(the “Warrant Shares”). All conditions to and requirements for the Company’s right to call the
Warrants at this time have been satisfied.

     Each Warrant entitles the holder thereof to purchase one share of Common Stock at an exercise
price of $3.41 per share, subject to adjustment in certain events, at any time until 6:30 p.m., New
York City time, on the Call Date, and the Warrants will remain exercisable pursuant to their terms
until such date and time. The resale of the Warrant Shares by the holders of the Warrants is
registered by the Company’s Registration Statement on Form S-3, Registration No. 333-116155 and
Registration No. 333-96369 (the “Registration Statement”), and covered by the prospectus included
therein dated November 21, 2005 (the “Prospectus”).

     The Common Stock is listed and traded on the American Stock Exchange under the trading symbol
“MEK”. On January 18, 2006, the last sale price of the Common Stock as reported on the American
Stock Exchange was $9.99 per share. The Warrants are not publicly traded and are not listed on any
stock exchange or stock market.

 

 

Alternatives Available to Holders of Warrants

     As a result of the Warrant call by the Company, Warrant holders have the following
alternatives with respect to their Warrants:

	 	•	 	Holders may exercise their Warrants until the Call Date. Until 6:30 p.m., New York
City time, on February 19, 2006, the Call Date, Warrant holders may exercise their
Warrants by purchasing shares of Common Stock at the exercise price of $3.41 per share.
The Warrant Shares may either be held for investment or sold under the Prospectus.
	 
	 	•	 	Holders may deliver their Warrants to be redeemed for cash after the Call Date.
After the Call Date, any Warrants that remain outstanding and unexercised will be
redeemed by the Company at a Call Price of $.01 per Warrant. All Warrants outstanding
after 6:30 p.m., New York City time, on the Call Date will be deemed to be redeemed by
the Company, whether or not they have been surrendered for redemption. However,
Warrant holders must surrender their Warrants to the Company to receive the Call Price.

     Holders of Warrants are urged to consult with their own tax, business and other advisors
concerning the tax, business and other consequences of the exercise, sale or redemption of their
Warrants.

Manner of Exercise of Warrants

     Warrant holders may exercise their Warrants by properly completing and signing the Exercise
Notice attached to their Warrants, and sending the Warrants to the Company, together with a payment
(by wire transfer, certified or cashier’s check or money order) of the aggregate exercise price of
the Warrants in full (in U.S. dollars) by such holder, to the Company at the address at the top of
this Notice. All checks and money orders should be made payable to the order of “Metretek
Technologies, Inc.” and delivered to the Company at the address on the top of the cover page of
this Notice. Holders of Warrants that wish to pay the exercise price by wire transfer of
immediately available funds should notify the Company of the wire (including the Federal routing
number and other transmitting information) and have the funds wired to the following account:

First National Bank of Colorado

Boulder, Colorado 80301

Phone: (303) 544-7999

ABA Number: 107001960

Acct Number: 0701006851

Acct Name: Metretek Technologies, Inc.

     A holder may exercise Warrants in whole or in part, but no Warrants may be exercised for
fractional shares of Common Stock.

     The exercise price will be considered to have been paid only upon clearance of the wire
transfer, certified or cashiers bank check or money order tendered therefor. All funds received by
the Company from the exercise of the Warrants will be deposited upon receipt.

     Once a holder has exercised a Warrant, the exercise may not be revoked. To be
accepted, the properly completed Warrants and payment with respect to the exercise price of the
Warrants must be received by the Company before 6:30 p.m., New York City time, on February 19,
2006, the Call Date.

     Certificates representing the Warrant Shares will be issued and delivered promptly after the
Company receives the duly completed and signed Exercise Notice and the payment of the exercise
price of the Warrants in full. Holders of Warrants, as such, will not have any rights as
stockholders of the Company until stock certificates representing the Warrant Shares subscribed for
are issued to them.

 

 

     The risk of method of delivery of all documents and payment is on the holders of the Warrants,
not the Company. If the mail is used, it is recommended that payments be made by registered mail,
properly insured, return receipt requested, and that a sufficient number of days be allowed to
ensure delivery to the Company before the expiration of the Warrants.

     Questions relating to the method of exercise should be directed to the Company at the address
set forth at the top of the first page of this Notice.

     The right of holders to exercise the Warrants will expire at 6:30 p.m., New York City time, on
February 19, 2006. All Warrants not properly exercised on or before such date and time will be
redeemed by the Company at the Call Price. After the Call Date, all Warrants must be delivered to
the Company for receipt of the Call Price.

     The method of exercise and redemption and the rights of the holders of Warrants are governed
by and subject to the terms and conditions set forth in the Warrants. This Notice of Redemption of
Warrants is being given, and the manner of redemption will be conducted, in compliance with the
terms and conditions of the Warrants.

Warrant Shares

     The issuance of the Warrant Shares by the Company to the Warrant holders upon proper and
timely exercise of the Warrants has not been registered with the SEC or the securities commission
of any state, and cannot be transferred or sold except in compliance with applicable federal and
state securities laws. The certificates representing the Warrant Shares will contain a restrictive
legend to that effect. However, the sale of the Warrant Shares by the holders after exercise has
been registered with the SEC and is covered by the Prospectus, so long as the holder complies with
applicable prospectus delivery requirements.

Questions and Requests for Additional Information and Copies

     Any questions or requests for additional information relating to this Notice or otherwise
related to the Warrants or the Warrants Shares should be directed to the Company at the address and
telephone number set forth on the first page of this Notice. Additional copies of this Notice, the
Prospectus or any other documents referred to in this Notice may be obtained, without charge, by
written or oral request to the Company.

By Order of the Board of Directors

W. Phillip Marcum, President

Denver, Colorado

January 19, 2006

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