Enservco Corporation (NYSEAM:ENSV) signed an agreement to acquire Buckshot Trucking LLC from Tony Sims and Jim Fate for $5.5 million on March 19, 2024. The initial consideration is $5.0 million, including $3.75 million of cash to be paid at closing and $1.25 million of ENSV common stock, with the stock price based on the 10-day period immediately preceding the Closing Date. As part of the Transaction, the principals at Buckshot have the opportunity for an additional potential performance payout of up to $0.5 million based on growth and financial performance relative to the performance of Enservco?s stock. Enservco Corporation will pay $500,000, in the form of Enservco common stock. To fund the $3.75 million of cash to paid at the Transaction?s closing, Enservco must raise additional capital either through the equity and/or debt markets. Buckshot founder and current owners Tony Sims and Jim Fate will continue to lead their business. Buckshot?s 2023 unaudited EBITDA (earnings before interest, tax and depreciation) is approximately $2.3 million on revenue of approximately $8.2 million.

The Transaction is subject to approval by Enservco stockholders. Each party?s obligation to consummate the Acquisition is conditioned upon certain closing conditions, including without limitation: (i) Buckshot Trucking having a trailing twelve ( 12 ) month adjusted EBITDA of at least $2,000,000 as of the closing date; (ii) Buckshot Trucking delivering a closing working capital amount of at least $1,230,000 as of the closing date; (iii) the Information Statement having been mailed to Enservco?s stockholders and at least 20 calendar days elapsing from the date of completion of such mailing; (iv) the performance by the other party of its obligations and covenants under the Buckshot Purchase Agreement; (v) the absence of any decree prohibiting consummation of the closing; and (vi) the delivery of certain closing deliverables by the other party. The Transaction is expected to close in the second quarter of 2024.

As of June 10, 2024, this includes completing the financing for Buckshot Trucking LLC which includes, amongst other terms, the issuance of $1.25 million of equity.

Enservco Corporation (NYSEAM:ENSV) completed the acquisition of Buckshot Trucking LLC from Tony Sims and Jim Fate on June 13, 2024.