ZZZZ Best, the Reseda-based carpet cleaning business founded by youthful entrepreneur Barry Minkow, has gone public by taking over a dormant oil-and-gas exploration business that has publicly traded stock.
To complete the merger, Minkow traded all of his ZZZZ Best stock for 80% of Morningstar Investments, a Utah shell company, said Harold Fischman, Minkow's lawyer. The merged company will be named ZZZZ Best Co. Inc., and will be reincorporated in Nevada with Minkow as chairman and president.
The business in Reseda has become a wholly owned subsidiary of the merged company, Fischman said.
Brokers in Salt Lake City who trade the stock said Morningstar shares are trading at bid prices of as low as $1 and at an asked price of $1.50, a high for the stock. They said the stock hit its all-time low, around 5 cents, last year.
Minkow, 19, started his business from his home four years ago. It now has four offices and claims 1985 sales of about $2 million. He said going public will enable ZZZZ Best to grow faster.