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Contributors: Douglas McIntyre Jon C. Ogg

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Monday, September 18, 2006

Another Blank Check IPO Filing; Sure Smells Like Public Private Equity

Industrial Services Acquisition Corp has filed to come public in an IPO. The company filed for the sale of $36 million in securities, which is for 4.5 million units. Each unit is 1 share of common stock and one warrant. As you can tell by the name this is another blank check IPO, and they claim to have no acquisition targets under review.

The underwriters are listed as Maxim Group LLC and Wedbush Morgan Securities. The company has no operating history and has no set target. It notes logistics, freight brokerage or forwarding, insurance brokerage, medical labs testing, and staffing as the targets; but it also says the search will not be limited to that. If you have noticed more and more blank check IPO's, you aren't alone. A blank check IPO is essentially a narrowly focused new private equity firm that is becoming a public company, and I will stick by that description regardless of what is going on in the markets.

Here is the company description of itself: Industrial Services Acquisition Corp. is a Business Combination Company,™ or BCC.™ A BCC is a blank check company formed for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition, stock purchase or other similar business combination, an unidentified operating business. Our objective is to acquire an operating business in the business services industry, although our efforts will not be limited to any particular industry. We do not have any specific merger, capital stock exchange, asset acquisition, stock purchase or other business combination under consideration or contemplation and we have not, nor has anyone on our behalf, contacted any potential target business or had any discussions, formal or otherwise, with any prospective target business with respect to such a transaction. However, members of our management have had non-substantive communications with a limited number of their contacts that a pool of capital is being raised for acquisitions and that we intend to seek an acquisition after the consummation of this offering. Such contacts have not introduced, identified, selected or chosen any potential target businesses to or for us.

Jon C. Ogg
September 18, 2006

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