American Electric Technologies, Inc. (Nasdaq:AETI) a leading global supplier of power delivery solutions for the energy industry, today announced that it has entered into a definitive agreement to sell $5.0 million of convertible preferred stock in a private financing to JCH Crenshaw Holdings, LLC of Beaumont, Texas.  

JCH Crenshaw Holdings, LLC is led by Casey Crenshaw.  Mr. Crenshaw is currently executive vice president of The Modern Group, a family of leading oil field equipment companies including Dragon, president of M/G Finance Co. LLC and serves on Modern's board of directors. As part of the investment, Mr. Crenshaw will join AETI's board of directors.  

"I am very enthusiastic about AETI's prospects for market leadership in the global energy industry," said Crenshaw. "The company has a deep history in oil & gas, a strong management team, and is well positioned in the key global energy markets for future success."

The agreement provides for the issuance of $5.0 million of Series A convertible preferred stock, convertible into 1,000,000 shares of common stock at a conversion price of $5.00 per share. The agreement also provides for the issuance of warrants to purchase 125,000 shares of common stock at an exercise price of $6.00 per share and 200,000 shares at an exercise price of $7.00 per share.

AETI is raising this capital for general corporate purposes which may include expansion of its manufacturing capacity to meet growing demand for its power delivery products, accelerating its international expansion in key energy markets including Brazil and China and making additional corporate acquisitions.

"Casey Crenshaw brings AETI significant experience in successfully growing a global oil and gas business," stated Charles Dauber, chief executive officer of AETI. "We appreciate his support and financial commitment, and welcome him to the AETI board of directors." Closing of the financing is subject to an amendment to the Company's revolving credit agreement and customary closing conditions. The Company will file a Form 8-K with the Securities and Exchange Commission with additional information about this transaction.  

The securities to be issued in the private placement have not been registered under the Securities Act of 1933 or any state securities laws and unless so registered may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933 and applicable state securities laws.

American Electric Technologies, Inc. (Nasdaq:AETI) is a leading global provider of power delivery solutions to the energy industry. AETI offers M&I Electric™ power distribution and control products, electrical services, and E&I Construction services, as well as American Access Technologies zone enclosures, and Omega Metals custom fabrication services. South Coast Electric Systems L.L.C., a subsidiary, services Gulf Coast marine and vessel customers.

AETI 
www.aeti.com