Reported Earlier, Star Issued 250K Shares Of Its 10% Series A Cumulative Perpetual Preferred Stock To Enservco In Exchange For 12.5M 'ENSV' Common Shares And Share Equivalents; Star Also Made A $1M Short-Term Loan To Enservco In The Form Of A Promissory Note

Author: Benzinga Newsdesk | August 12, 2024 12:02pm

Star Equity Holdings, Inc. (NASDAQ:STRR, STRRP))))) ("Star" or the "Company"), a diversified holding company, announced today that effective August 9, 2024, it completed an investment in Enservco Corporation (NYSE:ENSV) ("Enservco" or "ENSV"), a Colorado-based Energy Services company that is expanding into the Transportation & Logistics sector via the acquisition of Buckshot Trucking, LLC ("Buckshot").

 

Transaction Highlights

• Star issued 250,000 shares of its 10% Series A Cumulative Perpetual Preferred Stock ("STRRP") to Enservco in exchange for 12.5 million ENSV common shares and share equivalents, representing $2.5 million in value using STRRP's $10.00 per share liquidation preference.
• Star also made a $1 million short-term loan to Enservco in the form of a promissory note to facilitate the acquisition of Buckshot.
• Star will receive one seat on Enservco's Board of Directors, which has been designated for Star's CEO, Rick Coleman.
   

Posted In: ENSV STRR