Smartek Inc., a builder of low-cost housing, has begun merger negotiations with a mortgage banking company in New York.

Polus Inc. of Colorado, a majority shareholder in Smartek, said the mortgage banking company does business nationwide and would enter into a merger with about $24 million of assets and projected pretax profits in excess of $17 million.

Management of Smartek has begun its due diligence process. If the merger is completed, Smartek would apply for a listing on Nasdaq.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.