Enservco Transforms Business With Close of Buckshot Acquisition and Share Exchange With Star Equity Holdings

Core Viewpoint - Enservco Corporation has completed the acquisition of Buckshot Trucking LLC, marking a strategic entry into the energy logistics sector, which is expected to enhance financial strength and operational visibility [1][3][5] Buckshot Transaction Summary - The total consideration for the Buckshot acquisition was $5.0 million, consisting of cash, common stock, promissory notes, and escrowed funds [2][6] - The acquisition is anticipated to add a higher margin business with strong growth potential and cash generation, while also providing year-round operational visibility [3] - Buckshot's leadership will remain in place, with owners Tony Sims and Jim Fate continuing to drive growth [3][5] - The transaction is expected to add $1.25 million in stockholders' equity to Enservco [3] Star Transaction Summary - Enservco has entered a strategic financing agreement with Star Equity Holdings, which includes a $2.5 million equity exchange and a $1 million short-term promissory note [1][4] - Star's investment strengthens Enservco's financial position and provides a recurring dividend through Star's preferred stock [4] - Following the transaction, Star holds approximately 20% equity ownership in Enservco, enhancing its influence on the company's strategic direction [9] Compliance Update - Enservco is actively working to regain compliance with NYSE American listing standards after receiving a notice of potential delisting due to insufficient stockholders' equity [10][11] - The company has implemented several measures, including an equity line of credit and the recent acquisitions, which collectively added over $6.0 million in equity to its balance sheet [11][12] Upcoming Financial Reporting - Enservco is scheduled to release its Q2 2024 financial results on August 14, 2024, followed by a conference call on August 15, 2024, to discuss the results and recent transactions [13]