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TICKERS: SMGI

Texas Oilfield Services Provider to Acquire Company in Same Space
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With the merger, the company can, for one, expand its production market services.

SMG Industries Inc. (SMGI:OTCQB) announced in a news release it signed an agreement to acquire all of the membership interests in Trinity Services for $3.35 million. The deal is expected to close before June 21, 2019.

Trinity, a 20-year-old oilfield services firm with drilling and production market segments, operates in the Haynesville shale area of East Texas and Western Louisiana. In fiscal year 2018, the company generated about $5.4 million, an 80% increase from 2017. Trinity has a fleet of heavy equipment, and its facilities are strategically located near the resource plays.

For SMG, the transaction will expand its geographic footprint, diversify its offerings on the production side, with the addition of well site and workover services, and provide additional clients, primarily oil and gas operators. Trinity's management will stay on board.

"The acquisition of Trinity Services will approximately double our company's current revenues and allow us to immediately cross-sell a broader product offering across our customer bases," SMG CEO Matt Flemming said in the release.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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