TexCom, Inc. (OTCPK:TEXC) entered into agreements to acquire Peak Water Systems SWD #1 and the Bennett SWD #1 from Robert S. May and other individuals for $22.7 million on June 5, 2014. As a part of consideration, TexCom shall pay $2.65 million in cash, $12.96 million in common stock valued at $0.299 per share and $7.07 million in assumption or refinancing of debt. Green Bank of Houston, Texas, is providing debt financing to complete these acquisitions.

The completion of transaction is subject to approval by TexCom's shareholders of a one-for-ten reverse stock split (and reduction in authorized shares) at the Annual Meeting of Shareholders on June 26, 2014 and other customary closing conditions. Board of Directors of TexCom has unanimously approved the acquisitions. The acquisitions are expected to close around June 30, 2014. These assets are expected to add $5.5 million of revenues per year and earnings before interest, income taxes, depreciation and amortization of approximately $3.7 million per year. WoodRock & Co. acted as financial advisor to TexCom and HSSK Capital Advisors, LLC acted as fairness opinion provider for Board of Directors of TexCom.

TexCom, Inc. (OTCPK:TEXC) completed the acquisition of Peak Water Systems SWD #1 and the Bennett SWD #1 from Robert S. May and other individuals in July 2014.