Legend Oil and Gas Ltd has entered into a nonbinding letter of intent (LOI) with Black Diamond Energy Holdings, LLC (dba Maxxon Energy and related companies- together Maxxon), to purchase 100% of its limited liability company membership interests.

The purchase price to be paid is $4.354 million, with an initial payment of $1.5 million at closing, and the balance of the purchase price being payable pursuant to a secured promissory note in the principal amount of $2,854,000 due on the first anniversary date of closing, together with 5% interest per annum. The note will be secured by certain assets of the acquired combined entities. The original founders of Maxxon will also receive newly created Legend perpetual convertible preferred stock with a value of approximately $260,000.

Maxxon was founded in 2012 and has grown from zero revenue to over $10 million in 2014 revenue (unaudited). Maxxon is a last mile trucking company in North Dakota (The Bakken), transporting oil for various companies, many of which are some of the largest oil producing operators in North Dakota. Its customers include Statoil, Northern Tier Energy (Western Refineries) and Bridger Trading Group.

Tags: Legend O&G