TAMPA, FL--(Marketwired - May 21, 2014) - Enviro-Serv, Inc. (OTC: EVSV), a growing company in the commercial and residential property maintenance industry, is pleased to announce that terms and due diligence for the previously announced LOI, have been finalized by both parties and the definitive asset purchase agreement is signed and secured.
The target acquisition is on track to meet or exceed revenue expectations of $1.1m for 2014 and is ahead of last year's sales YTD. 2015 revenues are expected to reach $1.50m with cumulative growth as the acquisition at hand becomes effective toward expansion both geographically and in terms of services and overall capabilities. Also included in the acquisition are materials and equipment valued at $100,000.
As well, the initial non-refundable down payment of $42,500 to effect the transaction has been sent and secured by the contract attorney in his escrow trust account as of yesterday.
"This acquisition is a major milestone in laying the foundation for Enviro-Serv to position itself as a leading contender in the Tampa Bay pest control market and surrounding territories," states EVSV CEO, Chris Trina. "The terms of the contract being made public are as follows; $850,000 total purchase price, $557,500 due at Oct. 15th closing date, 10-year 6% note payable on $250,000 balance. This is the busiest termite season Tampa has seen in the last decade and our subsidiary, X-Terminate has increased its fumigation business exponentially thanks to a strategic partnership with our target acquisition company." Regarding funding of this acquisition Trina stated, "We announced just yesterday another major milestone event in our filing of a REG-A offering with the SEC to raise $1.5M along with an investment agreement from the NY based firm who's been successfully funding EVSV since last August. A Tampa institutional investor has verbally committed $100,000 towards the needed balance to close and I am staying committed to adding personal funds if a shortfall were to occur as well. Securing this funding in a timely manner is of utmost priority but now that the deal is inked we are on a quest to find additional targets and continuing to build shareholder value."
Trina ended by saying this, "This is only added benefit in line with our plans for the target acquisition, which will give us the necessary market reach to take our enterprise to the next level, in an industry that is only getting bigger by the year. The cost of termite damage in North America alone runs into the tens of billions of dollars. I greatly appreciate the support and patience of our shareholders over the last 6 weeks in getting this deal finalized."
Enviro Serv, Inc. (OTC: EVSV) is a Tampa based corporation specializing in providing property maintenance services in geographically concentrated warm climate states. Through an aggressive acquisition strategy, the Company is building a portfolio of highly profitable enterprises that offer year round services such as pest control management, lawn and landscaping care, pool maintenance, air conditioning/refrigeration installation and repairs and a host of additional onsite maintenance offerings. Please visit our websites at www.enviro-serv.com and www.xterminateinc.com to learn more.
Forward-Looking Statements - This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause future results to differ materially from the forward-looking statements. You should consider these factors in evaluating the statements herein, and not rely solely on such statements. The forward-looking statements in this release are made as of the date hereof and Enviro-Serv, Inc. undertakes no obligation to update such statements.