Service Team Inc (SVTE)

[finna_make_gains]

newest notes shown on the 10-k were from july. The main reason, I believe, is the acquisition of MCV did not come into fruition and lead to the sell off. Instead this was in the 10-k:

Deposit for Acquistion of MCV Companies, Inc.

Service Team, Inc. has paid $40,000 in cash as of August 31, 2016 towards the acquisition of MCV Companies, Inc., which has not yet been completed. Therefore, as of August 31, 2016, the amount is included within other currents assets as the Company expects that the closing will occur within six months.

A/S increased shortly after 10-k was released but there is speculation on to why. My opinion it was needed to acquire MCV, since SVTE does not have the cash on hand to pay the amount MCV wants they are going to issue shares to acquire them. The prior press release indicated the acquisition would be from cash and stock issuance. MCV does about 2 milly in revenues while SVTE does 3 milly per year. If I was MCV I need at least the around same amount of the current O/S to consider a deal. Hoping to get news on the acquisition soon.