This Letter of Intent involves
Title: NEXT FUEL, INC. SIGNS LETTER OF INTENT TO ACQUIRE ELITE CONSTRUCTION AND FABRICATION, LLC
Industry: Oil and Gas Operations Sector: Energy
NEXT FUEL, INC. SIGNS LETTER OF INTENT TO ACQUIRE ELITE CONSTRUCTION AND FABRICATION, LLC
SHERIDAN, WY, September 4, 2013 -- Next Fuel, Inc. (OTCQX: NXFI), a technology provider and service company that assists owners of natural gas and oil production resources to increase the efficiency of their operations announced today it has signed a term sheet to acquire the assets of Elite Construction and Fabrication, LLC (“Elite”). Elite is an oil and gas service company headquartered in Dallas, Texas with fabrication facilities in Oklahoma. Along with a highly qualified and certified construction group, Elite has a strong sales staff that is active in many of the basins that Next Fuel will be offering it's proprietary water treatment technologies. Elite had revenues of over $40 million in 2012.
In February this year, Next fuel hired JH Darbie & Co. to provide investment banking services and to evaluate potential acquisition candidates that would fit into the Company’s business plan for accelerating growth and increasing shareholder value.
“This acquisition offers a quality synergy in our plan for the future”, stated Robert Craig, Chairman and CEO of Next Fuel, Inc. “Not only will the revenues from on-going business be a benchmark for the Company, but the fabrication unit and Elite's sales staff will enhance our current plans to market our proprietary water treatment technologies. Elite’s customer base includes many of the well-known majors in the industry that will have a need for our water and disposal treatments”, concluded Mr. Craig. "This acquisition is the next step in developing an integrated portfolio of technologies and services for the oil and gas industry."
The term sheet with Elite contemplates closing during calendar year 2013, but is subject to completing due diligence and other closing conditions and is non-binding except for confidentiality and "no-shop" provisions. The term sheet contemplates a purchase price that includes a combination of cash, an earn-out, shares of Next Fue