Replies to post #56420 on Sixty Six Oilfield Services Inc (SSOF)

[Nobodys Fool]

Yes. I'm sure there will be even further clarification. Company is completely undervalued. Although I can't stand Bland either I don't think Jim Clayton is that stupid to include him in any real deal.

[Prodigious]

I agree. I don’t see what all the fuss is about.

SSOF is selling 1 of the 3 companies under its umbrella. They will receive money for the sale of that business which presumably will be used to fund operations/rig purchases/and rid refurbishing.

This is the cash we needed! Who cares who we sell the business too, as long as we get market value for the business. If Bland wants it and pays a fair price, so be it.

WM is right that Bland is back, but the way I read this, Bland has nothing to do with the management of SSOF and it’s operations going forward.

This is all good news for us. Everyone’s speculation and uncertainty caused us to drop ~50% since the filing. Now that we have the answers we were looking for, let’s concentrate our conversations on moving forward, not looking back.

[wadirum1]

Did you read the S-1? It states:

Our Planned Acquisition of Sixty Six Oilfield Services

The letter of intent dated August 16, 2018 we have to purchase Fluid End Sales from Sixty Six Oilfield Services also obligates us to purchase three million shares of super voting Series A-1 Preferred Stock of Sixty Six Oilfield Services from the management of Fluid End Sales/Sixty Six Oilfield Services. The letter of intent provides that we will pay a purchase price of (a) shares of our common stock equal to ten percent of our outstanding common stock calculated following such issue and $10.5 million in cash, of which $6.5 million will be paid at closing and the balance will be paid in the form of promissory notes, payable in one year. See, “How We Intend to Use the Net Proceeds from Our Sale of the Shares”. We will pay interest on the notes at the prime rate as published in the Wall Street Journal from time to time. The notes will be secured by a pledge of the stock of Fluid End Sales to the noteholders. In the event we default on the payment of principal or interest, the noteholders may elect to foreclose against the stock of Fluid End Sales. We plan to use part of the proceeds from repayment of our intercompany loan to Fluid End Sales to prepay the promissory notes, unless sooner converted into shares of our common stock.

In other words, 10SION ends up with the SSOF A-1 preferred shares. So, 10SION will own SSOF.

I am guessing that there were always some pieces of paper that folks here never got to see. Hard to understand this otherwise.

[nsomniyak]

But - SSOF no longer has the rig refurbs which was the reason many of us are here.

[hstang04]

dont get how this is bad news ?