SSOF Announces Completed Acquisition of Five Star
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Posted On: 07/10/2018 9:40:37 AM
SSOF Announces Completed Acquisition of Five Star Rig and Supply Inc.Press Release | 07/10/2018
NEW YORK, July 10, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE--Sixty Six Oilfield Services, Inc. (OTCBB:SSOF) announces that it has completed the acquisition of Five Star Rig and Supply, Inc., an Oklahoma based drilling rig and supply parts company in an all stock transaction. This transaction will allow the Company to quickly expand and capitalize on the soaring Oil and Gas industry and move from just pipe sales to include oil rig purchasing, refurbishing, and sales. One of our key goals of the acquisition is to immediately finance six (6) to eleven (11) oil rig with refurbishment and sale opportunities in 2018.
The new unified Company will have a 2017 combined revenue of $12.6M with Gross Profits of $6.2M, more than twice the size of the original company. The Company will seek to immediately eliminate duplicate sales functions and certain assets and activities will be spun off to the original 66 Oilfield Supply LLC principals. The principal stockholders of Five Star received the controlling block of the Company's preferred stock. The Company plans to complete a registration of the company's stock and raise up to $40 Million for the purchase and resale of the drilling rigs through the sale of equity, convertible debt, and standard industry equipment financing. The rigs will provide more pipe sales for the company's original core business as well as move the company into new areas that include equipment refurbishing and equipment servicing.
Dave T. Ho, the Company's Chief Executive Officer, said, "The acquisition of Five Star is a momentous day in the history of the Company. Although it took longer than originally expected, it finally fulfils our April announcement and will propel us into a great future. We are excited that our opportunity with the upcoming rig sales may increase our gross revenues as much as seven-fold in 2018. With the acquisition complete, the Company will restart the audit process on July 12th. The Company plans to complete the audit and prepare to uplist to a national exchange in the quarter. This is a critical part of the capital raise we are conducting to finance the rig deals for the second half the year and beyond."
Mr. Jason Clayton, President of Five Star has been nominated to the Board of Directors and Dave Ho will continue as Chairman during the transition. Mr. Clayton said, "It's a privilege to serve the company and the shareholders. We are excited about our new opportunities for growth as we forge ahead." The merged oil and energy business will remain in Oklahoma City. To fulfil our stated mission of expansion, the Company is now starting to identify potential acquisition targets to add to its portfolio.
NEW YORK, July 10, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE--Sixty Six Oilfield Services, Inc. (OTCBB:SSOF) announces that it has completed the acquisition of Five Star Rig and Supply, Inc., an Oklahoma based drilling rig and supply parts company in an all stock transaction. This transaction will allow the Company to quickly expand and capitalize on the soaring Oil and Gas industry and move from just pipe sales to include oil rig purchasing, refurbishing, and sales. One of our key goals of the acquisition is to immediately finance six (6) to eleven (11) oil rig with refurbishment and sale opportunities in 2018.
The new unified Company will have a 2017 combined revenue of $12.6M with Gross Profits of $6.2M, more than twice the size of the original company. The Company will seek to immediately eliminate duplicate sales functions and certain assets and activities will be spun off to the original 66 Oilfield Supply LLC principals. The principal stockholders of Five Star received the controlling block of the Company's preferred stock. The Company plans to complete a registration of the company's stock and raise up to $40 Million for the purchase and resale of the drilling rigs through the sale of equity, convertible debt, and standard industry equipment financing. The rigs will provide more pipe sales for the company's original core business as well as move the company into new areas that include equipment refurbishing and equipment servicing.
Dave T. Ho, the Company's Chief Executive Officer, said, "The acquisition of Five Star is a momentous day in the history of the Company. Although it took longer than originally expected, it finally fulfils our April announcement and will propel us into a great future. We are excited that our opportunity with the upcoming rig sales may increase our gross revenues as much as seven-fold in 2018. With the acquisition complete, the Company will restart the audit process on July 12th. The Company plans to complete the audit and prepare to uplist to a national exchange in the quarter. This is a critical part of the capital raise we are conducting to finance the rig deals for the second half the year and beyond."
Mr. Jason Clayton, President of Five Star has been nominated to the Board of Directors and Dave Ho will continue as Chairman during the transition. Mr. Clayton said, "It's a privilege to serve the company and the shareholders. We are excited about our new opportunities for growth as we forge ahead." The merged oil and energy business will remain in Oklahoma City. To fulfil our stated mission of expansion, the Company is now starting to identify potential acquisition targets to add to its portfolio.
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