Energy, Utilities & Water  July 20, 2021

Pushing to move incorporation, Enservco to reconvene shareholders meeting

LONGMONT — Enservco Corp. (NYSE American: ENSV),  a provider of specialized well-site services to the domestic onshore oil and gas industries whose board is attempting to move its incorporation from Delaware to Nevada, will reconvene its annual stockholders meeting after pausing the meeting last month to drum up support for move. 

“Management and the Board believe reincorporation is in the best interests of all stockholders and we are encouraging our investors to vote their shares in favor of the proposal no matter how many shares they own,” Enservco CEO Marjorie Hargrave said in a prepared statement. 

Reincorporating in Nevada will eliminate the company’s obligation to pay the annual Delaware franchise tax, which amounted to $200,000 last year, according to a U.S. Securities and Exchange Commission disclosure.

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“In addition, the reincorporation may help us attract and retain qualified management by reducing the risk of frivolous lawsuits being filed against the company and its directors and officers,” the SEC filing said. “We believe that for the reasons described below, in general, Nevada law provides greater protection from such litigation to our directors, officers and the company than Delaware law. The increasing frequency of claims and litigation with little or no merit directed toward directors and officers has greatly expanded the risks facing directors and officers in general of public companies in exercising their duties.”

The disclosure claims the reincorporation proposal is not “in response to any present attempt known to our board to acquire control of the company or obtain representation on our board. Nevertheless, certain effects of the proposed reincorporation may be considered to have anti-takeover implications by virtue of being subject to Nevada law.”

The proposal requires approval by a majority of Enservco’s outstanding shareholders

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LONGMONT — Enservco Corp. (NYSE American: ENSV),  a provider of specialized well-site services to the domestic onshore oil and gas industries whose board is attempting to move its incorporation from Delaware to Nevada, will reconvene its annual stockholders meeting after pausing the meeting last month to drum up support for move. 

“Management and the Board believe reincorporation is in the best interests of all stockholders and we are encouraging our investors to vote their shares in favor of the proposal no matter how many shares they own,” Enservco CEO Marjorie Hargrave said in a prepared statement. 

Reincorporating in Nevada will eliminate…

A Maryland native, Lucas has worked at news agencies from Wyoming to South Carolina before putting roots down in Colorado.
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