SMG Industries Inc. (OTCPK:SMGI) acquired Barnhart Transportation, LLC, Barnhart Fleet Maintenance, LLC, Lake Shore Logistics, LLC, Lake Shore Global Solutions, LLC, Legend Equipment Leasing, LLC and Route 20 Tank Wash, LLC for $53.3 million on July 10, 2023. The consideration includes $26 million paid in cash at closing. As part of the transaction, the principal owners of Barnhart received $19.25 million of the purchase price in the form of SMGI common stock, received $5 million of SMGI preferred stock and received a $3 million promissory note from SMGI. The transaction was financed through a $25 million revolving credit facility from a national lender, with $16.4 million available and $10.9 million funded at closing, leaving $5.5 million of additional liquidity available on the revolving credit facility after closing. In addition, a $31.7 million senior secured term loan facility with a term loan lender was utilized to fund the purchase price. The proceeds from these two new senior secured lenders were used to finance the acquisition, refinance a portion of SMGI's existing debt that didn’t convert into SMGI common stock at closing, and to cover associated transaction and professional fees and expenses. B. Riley Securities, Inc. acted as financial advisor and Faegre Drinker Biddle & Reath LLP acted as legal advisor to SMG Industries Inc.

SMG Industries Inc. (OTCPK:SMGI) completed the acquisition of Barnhart Transportation, LLC, Barnhart Fleet Maintenance, LLC, Lake Shore Logistics, LLC, Lake Shore Global Solutions, LLC, Legend Equipment Leasing, LLC and Route 20 Tank Wash, LLC on July 10, 2023.