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. 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.