Energy Services of America Corp. (OTCMKTS:ESOA) Enters Asset Purchase Agreement with Tribute Contracting & Consultants, LLC

Energy Services of America Corporation, a Delaware-based company, recently announced a significant development in its operations. On October 30, 2024, the company’s wholly-owned subsidiary, Tribute Acquisition Company, based in Ohio, entered into an Asset Purchase Agreement with Tribute Contracting & Consultants, LLC. Tribute, also an Ohio corporation located in South Point, Ohio, will see Tribute Acquisition acquiring a substantial portion of its assets for a total consideration of $22.0 million in cash.

In addition to the cash consideration, the Agreement also includes $2.0 million of Energy Services of America’s common stock. The transaction is subject to customary closing conditions and has received approval from Tribute’s co-owners, Tom Enyart and Todd Harrah. Both companies made standard representations, warranties, and covenants as part of the Agreement. The anticipated closing date for this transaction is on or about December 2, 2024.

As part of the agreement, Mr. Enyart and Mr. Harrah, co-owners of Tribute, will continue their employment with Energy Services of America’s new subsidiary. They have both agreed to Executive Officer Employment Agreements and Non-Competition Agreements for thirty-six and sixty months, respectively, showcasing their commitment to the newly structured organization.

The consideration for the acquisition includes a $2.0 million issuance of Energy Services of America’s Common Stock to the Sellers, with a division of 50% each to Mr. Enyart and Mr. Harrah, relying on certain exemptions under The Securities Act of 1933. The value of the stock compensation will be determined based on the average of the daily closing prices of the company’s common stock on the Nasdaq Capital Market during the ten consecutive days preceding the Closing Date.

This summary of the Agreement provides a concise overview of the transaction; however, the complete text of the Agreement, which is appended as Exhibit 2.1 to the Current Report on Form 8-K, should be referred to for detailed information.

In conjunction with this development, no financial statements were provided, and the only exhibit attached to the 8-K filing is the Asset Purchase Agreement dated October 30, 2024.

This acquisition marks a significant stride for Energy Services of America Corporation as it forges ahead with its growth and strategic initiatives. The Agreement with Tribute Contracting & Consultants, LLC positions the company for potential expansion and synergy in its operational framework.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Energy Services of America’s 8K filing here.

Energy Services of America Company Profile

Energy Services of America Corporation, together with its subsidiaries, provides contracting services for utilities and energy related companies in the United States. The company constructs, replaces, and repairs interstate and intrastate natural gas pipelines and storage facilities for utility companies and private natural gas companies; and provides services relating to pipeline, storage facilities, and plant works.