Bitzio Issues Letter to Shareholders
November 13 2014 - 2:17PM
Business Wire
Bitzio (OTCBB: BTZO) DBA Democratique today issued the following
letter to shareholders:
Dear Shareholders,
We wanted to take this opportunity to share the growth,
progress, and plans of Bitzio Inc (BTZO) DBA Democratique to become
a major force in the emerging fashion brand industry.
In July, we announced the acquisition of two brands joining the
Democratique family. These brands included E-Motion Apparel and
Lexi-Luu Designs. In July we closed both of the acquisitions as
planned, and their results will be announced in our upcoming 10-Q
filing. In addition, Democratique has identified our next two
target acquisitions which we expect will occur over the next two
months. Each of these brands represents a unique opportunity to
capitalize on a specific market niche and current gap in the
market.
Target 1: SKIPJACK DIVE & DANCEWEAR INC.
Skipjack Dive & Dancewear represents one of our next two
strategic acquisitions. Skipjack Dive & Dancewear sells
swimwear and divewear in all sizes, including plus size for more
modest swimwear. In addition, the acquisition of Skipjack provides
Democratique with manufacturing equipment, offering an additional
revenue stream via subcontracting manufacturing to other fashion
brands. Democratique expects to announce the executed LOI for
Skipjack by the end of November 2014.
Target 2: PUNKZ GEAR INC.
The second acquisition in the pipeline is Punkz Gear. This is a
sister company of Lexi-Luu Designs Inc. Punkz Gear is a kids hip
hop dancewear line for dance and hip casual wear. Punkz Gear is
manufactured out of the Lexi-Luu Designs facility in Mesa, Arizona,
and is also owned by our CEO, Hubert Blanchette. We expect to
announce the executed LOI for Punkz Gear in December 2014.
It is also worth noting that our core portfolio brands are
performing well. The following summarizes these brands, and
provides a recap.
E-Motion Apparel Inc.
E-Motion Apparel is a savvy niche brand that offers unique,
tie-dyed casual wear for women. Founded in 2011, E-Motion Apparel
is currently available in more than 50 stores with presence in many
hotels, including MGM Grand, and spas from Florida to California.
Democratique acquired 100% of E-Motion Apparel for a total of 350
million common shares of Bitzio, and a cash earn-out based on
performance. Management has been working aggressively to further
build this brand, with the launch of its new website and ecommerce
capabilities, the procurement of new sales team members, and
enhancing the company’s production capabilities.
Lexi-Luu Designs Inc.
Lexi-Luu Designs is a current leader in girls dancewear.
Lexi-Luu had revenues of approximately $600,000 in 2013. Our team
is already working with Lexi-Luu to expand.
Cleo Inc.
Founded by Angie Daza, CEO, in 2011, Cleo is a jewelry design
company inspired by handcrafted jewelry made by local artisan women
in Peru. Its “fair trade” products use native materials such as
silver and gemstones, and are crafted by local women.
We are focused on further growing the current portfolio, while
increasing our visibility in the capital markets as the new Bitzio
– Democratique. Similar to our closest comparable, Sequential
Brands Group (Nasdaq: SQBG), we will grow from a result of both
performance and acquisitions over time.
Our team is fully committed to accelerating our brands for the
benefit of all stakeholders.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and Canadian securities laws. The terms and phrases "expects,"
"would," "will," "believes," and similar terms and phrases are
intended to identify these forward-looking statements. Many factors
could cause Bitzio's actual results, performance or achievements to
differ materially from those expressed or implied by the
forward-looking statements. Copies of filings can be obtained at
www.sec.gov. These factors should be considered carefully, and
readers should not place undue reliance on Bitzio's forward-looking
statements. Bitzio has no intention and undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
Bitzio Inc.Hubert Blanchette,
213-489-1377infobitzio@gmail.com