OUSTON and KEMAH, Texas, Oct. 9, 2009 (GLOBE NEWSWIRE) -- On August 13, 2009, American International Industries, Inc. (Nasdaq:AMIN - News), Delta Seaboard Well Service, Inc. (Delta), Hammonds Industries, Inc. (Hammonds) (Pink Sheets:HMDI - News), and the minority interest owners of Delta entered into an agreement to effect a reverse merger of 100% of Delta into Hammonds. The parties anticipate closing this transaction within the next 30 days, but no later than the end of the year. Hammonds is a publicly traded company under the symbol HMDI.PK. Delta will be 100% owned by the public company. The name of Hammonds will be changed to Delta Seaboard International, Inc. and a new symbol will be obtained. Also, Delta will pursue listing on the OTCBB. Management believes that placing Delta in a separate publicly traded company will unlock the company's value apart from American's other subsidiaries and provide value to Hammonds' shareholders. American will maintain its controlling interest in Delta and will continue to consolidate Delta with its other subsidiaries. Related Quotes Symbol Price Change AMIN 1.15 +0.06 Chart for American International Industri {"s" : "amin","k" : "c10,l10,p20,t10","o" : "","j" : ""}
Delta had revenues of $19,131,831 and had operating income of $1,858,214 for the year ended December 31, 2008. Increased drilling activity during 2008 created a high demand for pipe and rig services. Drilling activity in 2009 has declined due to a slowing in the energy segment of the economy and for the six months ended June 30, 2009, Delta's revenues were $4,795,125 and operating loss was $374,294. In 2010, Delta is expecting an increase in revenues and profits due to anticipated higher oil and gas prices.
American International Industries, Inc. is a diversified holding company, with a business model similar to General Electric, Tyco International, and Berkshire Hathaway. The Company has holdings in Industry, Finance, and Real Estate in Houston Texas and surrounding areas, and Oil & Gas. The vision of the Company is to develop holdings in various industries through acquisition of existing companies, applying the financial resources and management expertise to foster the growth and profitability of the acquired businesses. The holding company serves as a financial and professional partner to the management of the subsidiaries. The role of the holding company is to improve each subsidiary's access to capital, achieve economies of scale by consolidating administrative functions, and utilize the financial and management expertise of corporate personnel across all units. The Company is continuing to work with management of the subsidiary companies to improve revenues, operations and profitability.