With the merger, the company can, for one, expand
its production market services.
SMG
Industries Inc. (SMGI:OTCQB) announced in a news release it signed an agreement to acquire all of the
membership interests in Trinity Services for $3.35 million. The deal is
expected to close before June 21, 2019.
Trinity, a 20-year-old oilfield services firm with drilling and production
market segments, operates in the Haynesville shale area of East Texas and
Western Louisiana. In fiscal year 2018, the company generated about $5.4
million, an 80% increase from 2017. Trinity has a fleet of heavy equipment,
and its facilities are strategically located near the resource plays.
For SMG, the transaction will expand its geographic footprint, diversify
its offerings on the production side, with the addition of well site and
workover services, and provide additional clients, primarily oil and gas
operators. Trinity's management will stay on board.
"The acquisition of Trinity Services will approximately double our
company's current revenues and allow us to immediately cross-sell a broader
product offering across our customer bases," SMG CEO Matt Flemming said
in the release.
[NLINSERT]
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and
provides services to Streetwise Reports as an independent contractor. She or
members of her household own securities of the following companies mentioned
in the article: None. She or members of her household are paid by the
following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors
of Streetwise Reports: None. Click here
for important disclosures about sponsor fees. As of the date of this article,
an affiliate of Streetwise Reports has a consulting relationship with SMG
Industries. Please click here for more information. Within the last six months, an
affiliate of Streetwise Reports has disseminated information about the
private placement of the following companies mentioned in this article: SMG
Industries.
3) Comments and opinions expressed are those of the specific experts and not
of Streetwise Reports or its officers. The information provided above is for
informational purposes only and is not a recommendation to buy or sell any
security.
4) The article does not constitute investment advice. Each reader is
encouraged to consult with his or her individual financial professional and
any action a reader takes as a result of information presented here is his or
her own responsibility. By opening this page, each reader accepts and agrees
to Streetwise Reports' terms of use and full legal disclaimer.
This article is not a solicitation for investment. Streetwise Reports does
not render general or specific investment advice and the information on
Streetwise Reports should not be considered a recommendation to buy or sell
any security. Streetwise Reports does not endorse or recommend the business,
products, services or securities of any company mentioned on Streetwise
Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers,
employees or members of their families, as well as persons interviewed for articles
and interviews on the site, may have a long or short position in securities
mentioned. Directors, officers, employees or members of their immediate
families are prohibited from making purchases and/or sales of those
securities in the open market or otherwise from the time of the interview or
the decision to write an article until three business days after the
publication of the interview or article. The foregoing prohibition does not
apply to articles that in substance only restate previously published company
releases. As of the date of this interview, officers and/or employees of
Streetwise Reports LLC (including members of their household) own securities
of SMG Industries, a company mentioned in this article.
