A mid-sized provider of oil pipelines is diversifying into the restaurant business through a merger with the two-unit Illegal Burger group of Denver, Colo.
The combination of Nexus Energy Services Inc. and Illegal Restaurant Group Inc. will create a new firm, Illegal Restaurant Group, with an interest in both industries. The move is a backdoor way for Illegal to become a public chain, traded on NASDAQ.
Nexus noted in announcing the merger that a move into the restaurant business will improve the company’s cash flow. "With Illegal Burger revenues just over $2 million a year and projecting $10-15 million this first year, coupled with the expansion into broader territories throughout the US, this will certainly add a considerable value to our existing and future shareholders,” said CFO Loretta Higgins.
Illegal will continue to be led by CEO Jim Nixon.