SIXTY SIX OILFIELD COM USD0.001 (OTCMKTS:SSOF): Here's What's Happening

SIXTY SIX OILFIELD COM USD0.001 (OTCMKTS:SSOF), the old heavy oil field equipment company, announced on March 20, 2017 that it was going to be acquired by Medically Minded, Inc. The market appreciated the transaction and the share price jumped when the merger closed later in May 2017. The volume also increased. More than 100 million shares were exchanged on some days. Have a look:SourceConsequent to this deal, the company became very popular on the financial forums, such as the iHub forum. However, the terms and conditions of the deal were not fully disclosed. Thus, we could not find the form 10 that the President of SSOF promised:

"We are in process of completing a financial audit and plan to file a Form 10 under the Securities Exchange Act as soon as possible." Source

Hence, we commenced to perform our own due diligence on the stock to check whether the market returns were justified. This article is the result of our research.BusinessSSOF was founded in 1959. It is headquartered in Oklahoma City and has offices in Germany and Dubai. The business objective is the sale and rent of heavy oil field equipment in the US and internationally. More specifically, for the experts in the oil business, the company provides the following tools:

"Heavy-weight drill pipes, drill collars, pup joints, pony collars, handling tools, tubing, casing, blow-out preventers, engines, compressors, custom drilling rigs, and related equipment; and rents heavy drill pipes on short and long term basis"

Recent DevelopmentsThe mergerOn March 20, Medically Minded Holding Corp. and 66 Oilfield Services, LLC, announced their business combination. 66 Oilfield will be able to obtain financing through the financial markets, as the company will become public. Additionally, Medically Minded will enter the oil and gas sector thanks to the merger. The objectives of the merger were explained as follows:

"This creates an opportunity to purchase new equipment on a limited basis well below market prices which 66 can resell at better prices throughout our worldwide network to the benefit of our shareholders. Becoming a publicly traded company will provide us better access to financial markets and capital to best execute our business plan." Source

Furthermore, the good news is that Medically Minded, Inc. would not dilute shareholders for the transaction:

"The Company did not issue additional securities in the transaction. The Company has utilized reissue of an outstanding 3,000,000 shares of Series A-1 Preferred Stock representing 80% of the Company's equity. " Source

While reading the merger's press release, everything seems quite interesting. But we did some more due diligence and found out, like other market participants on iHub, that the company had tried other mergers before. We found out, for example, that Skara Restaurants Holdings Inc. intended to merge with Medically Minded, Inc., but the acquisition was canceled at the last moment. This case seems to be different like this new transaction, because Medically Minded, Inc. has already changed its name and ticker. It can be assumed that transaction has taken place. However, we could not really find the amount paid for 66 Oilfield Services and the conditions.Q1 2017On May 22, 2017, SSOF put out a new press release that announced the Q1 2017 earnings release. It was said that the new information included the consolidated financial statements accounting for the acquisition of 66 Oilfield Services, LLC, as a reverse merger. So, again it seems that the transaction has closed. The most relevant information is the following:

• Gross revenue: $1.434 million
• Total expenses: $1.126 million
• Net profit: $0.308 million

James Frazier, President, and CFO of the company, said the following about this earnings:

"Although the highlights of our 1st quarter were previously released we are now posting the financial statements for public review. We had a good first quarter and are continuing to build our core business as we grow and expand." Source

As mentioned earlier, we could not find the terms and conditions of the reverse merger in this press release, and the company did not properly disclose that the merger had taken place. We don't doubt that the new transaction will be very good for both companies, as obtaining financing will be easier and the new group may find some synergies. The closure of the merger and the total revenue reported seem to be the reason for the spike. Email subscribers should note that when two companies merge, the revenues of both companies are summed, thus market participants usually push up the share price.SourceConclusionSSOF exploded up the charts very recently because of its recent merger with Medically Minded, Inc. The reason for the spike is that the market appreciated that SSOF will be able to obtain financing easily now that the company is public. Furthermore, with the transaction, the company is growing the business. The share price did not seem to jump when the transaction was announced in March, but it jumped when the merger was closed in May. Additionally, the market seemed to appreciate the total amount of revenues that both companies obtained in Q1 2017, and the fact that the company officially closed the transaction. We expect the full details on the transaction and shortly and will provide our subscribers with those details once they become available. We will be updating our subscribers as soon as we know more. For the latest updates on SSOF, sign up below!Disclosure: We have no position in SSOF and have not been compensated for this article.