Trident Acquisitions - Business Model

Introduction

We are a blank check company formed under the laws of the State of Delaware  on March 17, 2016. We were formed for the purpose of entering into a merger, share exchange, asset acquisition, stock  purchase, recapitalization, reorganization or other similar business combination, with one or more target businesses. To date, our efforts  have been limited to organizational activities as well as activities related to this offering. Our efforts to identify a  prospective target business will not be limited to any particular industry or geographic region, although we intend to focus our search on  target businesses operating in oil and gas or other natural resources companies in Eastern Europe or interested in expanding into  Eastern Europe. We have not selected any target business for our initial business combination and we have not (nor has anyone on  our behalf), directly or indirectly, engaged in any substantive discussions with a target business with respect to a business  combination transaction with us. 


As Europe is striving to achieve energy independence, we believe that Eastern European oil and gas deposits, which are small and technically difficult to access, will attract the interest of investors and governments. We believe that historical exploration data can be reassessed with new geological knowledge to determine which reserves that were previously considered unrecoverable or uneconomic can be profitably recovered. 

Investment strategy

We want to take advantage of privately held oil and gas operating companies that have significant production volume and positive cash flows, but little or no reserves, and/or excessive leverage. By acquiring a company with undeveloped reserves and bridging them with companies that have strong engineering and geological expertise to develop the reserves, we believe that we will be able to create value for our investors.


We anticipate targeting companies with recoverable reserves in Ukraine, Romania, Poland, and other Eastern European countries and Black Sea area. We also intend to target companies with operations outside of Eastern Europe that are interested in expanding to this region.

Competitive strengths

We believe our competitive strengths to be the following:


Status as a public company


We believe our structure will make us an attractive business combination  partner to target businesses. As an existing public company, we offer a target business an alternative to the traditional initial  public offering through a merger or other business combination. In this situation, the owners of the target business would exchange  their shares of stock in the target business for shares of our stock or for a combination of shares of our stock and cash,  allowing us to tailor the consideration to the specific needs of the sellers. We believe target businesses might find this method a  more certain and cost effective method to becoming a public company than the typical initial public offering. In a typical initial  public offering, there are additional expenses incurred in marketing, roadshow and public reporting efforts that will likely not  be present to the same extent in connection with a business combination with us. Furthermore, once the business combination is  consummated, the target business will have effectively become public, whereas an initial public offering is always subject to the  underwriters’ ability to complete the offering, as well as general market conditions that could prevent the offering from  occurring. Once public, we believe the target business would then have greater access to capital and an additional means of providing  management incentives consistent with stockholders’ interests than it would have as a privately-held company. It can offer  further benefits by augmenting a company’s profile among potential new customers and vendors and aid in attracting talented  employees. 


While we believe that our status as a public company will make us an  attractive business partner, some potential target businesses may view the inherent limitations in our status as a blank check company,  such as our lack of an operating history and our requirements to seek stockholder approval of any proposed initial business  combination and provide holders of public shares the opportunity to convert their shares into cash from the trust account, as a deterrent  and may prefer to effect a business combination with a more established entity or with a private company.


Transaction flexibility


We offer a target business a variety of options such as providing the owners of a target business with shares in a public company and a public means to sell such shares, providing cash for stock, and providing capital for the potential growth and expansion of its operations or strengthening its balance sheet by reducing its debt ratio. Because we are able to consummate our initial business combination using our cash, debt or equity securities, or a combination of the foregoing, we have the flexibility to use the most efficient combination that will allow us to tailor the consideration to be paid to the target business to fit its needs and desires. 

Learn more about SPACs

Bridging U.S. Technologies and European Assets

  • The U.S. shale revolution disrupted majors’ monopolies both in production and services
    • Large companies are uncompetitive with small and difficult fields, and begin to focus on large, mostly offshore opportunities
  • The revolution also gave birth to a new generation of production techniques, especially in fracking and drilling
  • Eastern Europe felt behind this revolution:
    • Long standing traditions slow the adoption of new technologies
    • Human resources come mainly from either North Sea or Russia, where the geology is different 
  • Eastern Europe could boost current production and extend the life of existing infrastructure by adopting low-cost U.S. solutions
    • Build surface facilities such as compressor boosting stations to increase production 3-4 times without having to drill deeper
    • Use new mix of fracking fluids (e.g. chemical additives and gels) instead of water 
    • Use horizontal drilling
  • More environmentally responsible approaches can be undertaken

Learn more about Eastern Europe