This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

The TSX Venture Exchange fell 3.9 points to 992.1 Tuesday. David Danziger's halted capital pool shell, Aumento Capital IV Corp. (ACV), plans to acquire VeroLube Inc. as its qualifying transaction. The target claims to have a patented refining process that takes used motor oil and produces high-quality oil. Once this QT is done, VeroLube will be a large producer of commercial fuel from recovered used motor oil.

The QT is contingent on VeroLube acquiring Thermo Fluids Inc. from Nuverra Environmental Solutions Inc. (NES: 17.71), listed on the New York Stock Exchange. Thermo Fluids, a Scottsdale company, is the third-largest collector of used motor oil in the United States, but it is not much of a money maker. It lost $98.25-million (U.S.) on revenue of $116.26-million (U.S.) in fiscal 2013 and earned $10.45-million (U.S.) on revenue of $125.25-million (U.S.) in fiscal 2012. VeroLube has agreed to pay a hefty sum of $165-million (U.S.) cash and $10-million (U.S.) worth of shares to Nuverra, after which Aumento IV will acquire VeroLube for an unstated number of shares, change its name to that of its target, and list on the Toronto Stock Exchange. VeroLube anticipates closing the acquisition of Thermo Fluids in the second quarter of 2014, and completing the QT with Aumento IV by June 10.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS