MG Cleaners, a small oilfield services company based in the Galleria, has gone public via a reverse takeover of SMG Indium Resources (SMGI). The company specializes in the provision of products and services related to the washing and cleaning of drilling rigs.
SMGI agreed to purchase MG Cleaners for 4.6 million shares (shares traded at $0.30 on Friday) and $300,000 in cash. SMGI was originally formed to stockpile indium, a precious metal used in electronics manufacturing. After selling its stockpile in 2014, it became a cash shell.
The President of MG Cleaners is Stephen Christian who was a Rig Manager at Nabors Drilling until acquiring the company in 2010. The Chairman and CEO of MG Cleaners is Matthew Flemming.
Mr Flemming was the CEO of Houston-based HII Technologies when it was a cash shell public company. HII then made a few small acquisitions in the frac water management and safety & power segments of oilfield services during 2012-2013. The business peaked at $35 million in revenue in 2014 but filed for Chapter 11 in September 2015 after the downturn.
For the 6 months ended 30 June 2017, revenue for MG Cleaners was $1.2 million. The MG business had net income of $70,209. With the overhead costs of SMGI, the business lost $51,848 in the period. EBITDA was $259,478.
With the closing of the deal, Malone Bailey have been appointed as auditors to the company.