U.S. WELL SERVICES, INC. : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (form 8-K)

Item 1.01 Entry into a Material Definitive Agreement.

On September 30, 2022, U.S. Well Services, LLC (“USWS”), a subsidiary of U.S.
Well Services, Inc.
(the “Company”), entered into a promissory note (the “Note”)
in favor of Equify Financial, LLC, as lender (“Equify”), which provides for the
debt financing of certain equipment to be used by the Company in building an
electric frac fleet (the “Equipment”). Among other things, the Note:

  •   has a principal amount of $12,500,000,



  •   has a maturity date of October 1, 2027,



     •    is payable by USWS to Equify in equal monthly installments of principal
          in the amount of $208,334.00, together with all accrued and unpaid
          interest on the outstanding principal balance of the Note, commencing on
          November 1, 2022 and continuing thereafter until the maturity date, and



     •    bears interest at a rate per annum equal to the lesser of (i) the sum of
          (A) "prime rate" as published in the Wall Street Journal from time to
          time plus (B) 9.25%, and (ii) the maximum amount of interest allowed by
          applicable law.

The obligations of USWS under the Note are secured by a first priority lien in
favor of Equify in the Equipment, as set forth in the Security Agreement by USWS
in favor of Equify dated September 30, 2022 (the “Security Agreement”). As
previously disclosed, on July 18, 2022, the Company entered into a guaranty (the
“Guaranty”) pursuant to which it guaranteed to Equify the full performance and
payment of all indebtedness owed by USWS to Equify.

Dan Wilks and Farris Wilks, together with certain of their affiliates,
(collectively, the “Wilks Parties”) collectively hold a controlling interest in
ProFrac Holdings Corp. (“ProFrac”) and in Equify. Certain Wilks Parties also own
certain securities of the Company. As previously announced, on June 21, 2022 the
Company entered into an agreement and plan of merger with ProFrac and
Thunderclap Merger Sub I, Inc., an indirect subsidiary of ProFrac (“Merger
Sub”), pursuant to which and subject to the conditions in the agreement, Merger
Sub will be merged with and into the Company, with the Company surviving as an
indirect subsidiary of ProFrac.

The foregoing summaries of the material terms of the Note and the Security
Agreement are not complete and are subject to, and qualified in their entirety
by, reference to the complete text of the Note, the Security Agreement and the
Guaranty, which are filed as Exhibit 10.1, Exhibit 10.2 and Exhibit 10.3,
respectively, to this Current Report on Form 8-K and are incorporated herein by
reference.

Important Information For Investors And Stockholders

This communication does not constitute an offer to buy or sell or the
solicitation of an offer to buy or sell any securities or a solicitation of any
vote or approval. This communication relates to a proposed transaction between
the Company and ProFrac. In connection with this proposed transaction, ProFrac
filed with the SEC a registration statement on Form S-4 containing an
information statement/proxy statement/prospectus jointly prepared by the Company
and ProFrac, and other related documents. The information statement proxy
statement/prospectus contains important information about the proposed
transaction and related matters. STOCKHOLDERS OF THE COMPANY ARE URGED TO READ
THE REGISTRATION STATEMENT AND THE INFORMATION STATEMENT/PROXY
STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND
OTHER RELEVANT DOCUMENTS FILED BY THE COMPANY AND PROFRAC WITH THE SEC CAREFULLY
BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, PROFRAC AND THE
PROPOSED TRANSACTION.

Stockholders of the Company may obtain free copies of the registration
statement, the information statement/proxy statement/prospectus and other
relevant documents filed by the Company and ProFrac with the SEC through the
website maintained by the SEC at www.sec.gov. Copies of the documents filed by
the Company and ProFrac with the SEC are also available free of charge on the
Company’s website at www.uswellservices.com and ProFrac’s website at
www.pfholdingscorp.com.

This communication shall not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities Act.

Participants in Solicitation

The Company and ProFrac and their respective executive officers and directors
may be deemed, under SEC rules, to be participants in the solicitation of
proxies in connection with the transaction. Information regarding the officers
and directors of the Company is included in the Company’s Definitive Proxy
Statement on Schedule 14A filed with the SEC on April 20, 2022, as amended from
time to time, with respect to the 2022 Annual Meeting of Stockholders of the
Company and in the Company’s Current Report on Form 8-K filed with the SEC on
May 4, 2022. Information regarding the officers and directors of ProFrac is
included in ProFrac’s final prospectus relating to its initial public offering
(File No. 333-261255) declared effective by the SEC on May 12, 2022. More
detailed information regarding the identity of the potential participants, and
their direct or indirect interests, by security holdings or otherwise, is set
forth in the proxy materials and other materials filed with the SEC in
connection with the transaction.

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Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an

Off-Balance Sheet Arrangement of a Registration

The information included or incorporated by reference in Item 1.01 of this
Current Report on Form 8-K is incorporated by reference into this Item 2.03 of
this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.



(d) Exhibits.

Exhibit
  No.                                    Description

10.1          Promissory Note, dated as of September 30, 2022, by U.S. Well
            Services, LLC in favor of Equify Financial, LLC.

10.2          Security Agreement, dated as of September 30, 2022, by U.S. Well
            Services, LLC in favor of Equify Financial, LLC.

10.3          Continuing Guaranty, dated as of July 18, 2022, by U.S. Well
            Services, Inc. in favor of Equify Financial, LLC (incorporated by
            reference to Exhibit 10.3 to the Company's Current Report on Form 8-K
            filed on July 22, 2022.

104         Cover Page Interactive Data File (embedded within the Inline XBRL
            document).

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