Essex Rental Corp fka ESSX

[Sobek]

Some interesting information about the company buying $ESSX, Maxim Crane Works.

Maxim has a very long list of crane company acquisitions dating back to 1999. http://www.cranerental.com/history/

Maxim was then bought out for $42.50 a share and taken private in 2008 by Platinum Equity. http://www.platinumequity.com/

Then in May of 2016, Maxim was purchased from Platinum by NYSE: APO (APOLLO GLOBAL MGMT) http://www.businesswire.com/news/home/20160502005675/en

So obviously there's lots of money and experience backing this deal. ESSX's IR department ([e-mail]) told me through email that the proxy information on the deal including the pps will be released shortly and as per the PR released late last month, the deal is to close sometime this quarter. He also confirmed that the outstanding share count is still the same as listed on the OTC website of 25.1 million shares and the authorized count is still 40 million. http://www.otcmarkets.com/stock/ESSX/profile

If you check out the charts and have been watching the L2, you can see that accumulation has picked up and bids have been coming in up to $20k and have been holding support very strongly.

Hard to say when it will get the respect it deserves but right now it can be estimated to be trading at right around the lowest possible pps for the acquisition. I've seen this before when acquisitions are announced w/o the pps being disclosed right away and it trades at right around a fully diluted basis until the actual pps is disclosed. Then once the actual pps is announced, market makers will gap the pps to what is announced. So, what the numbers are telling us is the pps should be around .41 right now but the market is being cautious and holding it back right around the lowest case scenario or what can be considered the safe zone.

That being said, the last reported debt for ESSX is $62 million as reported in their Nov. 29, 2016 PR.
(https://www.coastcrane.com/about-us/news)

That leaves a MINIMUM of $10.5 million for share holders ($72.5 million minus $62 million in debt) or, approx. .41 a share due to shareholders upon closing.

Remember any amount of debt they keep on the books adds more value to shareholders for the buyout. Note that the Wells Fargo credit facility has already been extended to Q3 which, is AFTER the acquisition is supposed to be done so, that should add more value ABOVE .41 cents for shareholders upon closing.