I own several shares of this and this news today has moved the ask to 1.40 and we closed at .57 is this news that powerful or is there a very fat finger out there? thanks in advance.
Streicher Mobile Fueling Inc completes acquisition of H & W Petroleum for approx. USD6.3m 10/7/2005
Oct 07, 2005 (M2 EQUITYBITES via COMTEX) -- Streicher Mobile Fueling Inc (NASDAQ: FUEL and FUELW), a provider of petroleum product distribution services, transportation logistics and emergency response services, announced on Thursday (6 October) that it has completed the acquisition of H & W Petroleum Company Inc, a Texas-based marketer and distributor of lubricants, fuels and petroleum products. The acquisition closed on 1 October 2005.
Immediately prior to the closing of the acquisition H & W purchased the operating assets and limited inventory of a related company, Harkrider Distributing Company Inc.
Streicher acquired all of the capital stock of H & W and substantially all of the operating assets, inventory, accounts receivable and related business of Harkrider.
The original purchase price was approximately USD6.3m, which was adjusted to USD5.964m at closing by working capital and other closing adjustments, and was paid with a combination of cash, the assumption of specified liabilities and the issuance of USD2.463m of contingent two-year 10% deferred payment promissory notes. These notes are subject to an earn-out provision based on the performance of H & W after the acquisition.
In connection with the acquisition the company amended its credit facility, increasing it to USD20m, obtaining more favourable terms and extending the maturity to 26 September 2007.
Streicher also issued USD3.0m in 10% five-year redeemable senior secured notes with a two year moratorium on principal payments, which it had previously announced. A portion of the proceeds of these notes was used by the company to fund approximately USD1.5m of the purchase price paid in cash for the acquisition. The company also issued 360,000 four-year warrants to purchase shares of common stock at USD2.28 per share in connection with the financing.
Streicher said that with the acquisition of H & W it would become a dominant player in the lubricants, solvents and chemical distribution industry.
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