OKLAHOMA CITY, May 16, 2019 /PRNewswire/ -- Energy and Environmental Services, Inc. ("EES" or "Company") (OTC: EESE) announced that it has acquired Patriot Chemicals & Services LLC ("Patriot") in a merger. Subject to pricing adjustments, the Company will issue to Patriot's members 2.9 million shares of common stock, $165,000 in notes, and $165,000 in promissory notes. Earnouts could add an additional 1.0 million shares in each of year one and year two. The earnouts would be achieved if Patriot realizes earnings before interest, taxes, depreciation and amortization of $540,000 in year one and $720,000 in year two.
Leon Joyce, EES Chief Executive Officer, note that the closing terms changed in the merger consideration from the letter of intent. The Patriot members will receive 900,000 additional shares and $135,000 less in notes and cash. Joyce said, "These show the Patriot members' confidence in our combined future, and the changes will strengthen EES's working capital." The combination would have increased EES's 2018 revenues of $7.2 million by approximately $3.7 million. Upon the merger, Patriot shareholders will hold approximately 5.7% of the total outstanding EES common stock before earnouts. The EES stock closed at $0.25 ask per share on May 15, 2019.
Patriot markets chemicals used in oil and gas drilling and production, including chemicals manufactured by us. Patriot has two locations in Oklahoma and one in Kansas.
CEO Joyce said, "For us, the merger realizes one of management's key initiatives, which is to gain market share through mergers and acquisitions. Merging with a leading chemical service company like Patriot will provide an expanded access to the oil and gas industry that will facilitate our sales and enable us to better meet the needs of our customers."
Energy and Environmental Services, Inc. (OTC: EESE) based in Edmond, Oklahoma, participates in the oilfield chemical, anti-corrosive coatings and biotech industries. EES was established in 1991 and management has over 50 years of experience blending, manufacturing and packaging custom liquids and solid chemicals for the oil and gas, farm and ranch, and agricultural industries. Additionally, EES has expanded to manufacture coated oil and gas pump barrels, OMRI-certified liquid fertilizer, and other products and applications for livestock feed supplements, specialized anti-corrosive coatings and enzyme system technologies.
Company website www.eesokc.com
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Certain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Energy and Environmental Services actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by law, Energy and Environmental Services expressly disclaims any intent or obligation to update any forward-looking statements.
SOURCE Energy and Environmental Services, Inc.