Oilfield services specialist Deep Down has entered into definitive agreements with a number of new and existing institutional investors in connection with a private placement of shares in order to raise US $7.4 million.

The company intends to use the net proceeds primarily to reduce debt, expand the company’s production capacity and increase available working capital for future growth, it said. Deep Down has agreed to sell an aggregate of 4.1 million shares of its common stock at $1.80 per share.

Ron Smith, CEO, said: “Bringing in additional capital allows our company to significantly improve the manufacturing process on our core product line, resulting in greater production capacity and increased gross margins. The demand for our services and products has never been stronger. We are bidding on more work and much bigger jobs and our backlog is at a record high. We are now well-positioned to address our multi-billion dollar industry.”