Efftec International, Inc. Announces Financial Restructuring and Provides Corporate Status Update
July 20 2017 - 7:00AM
Access Wire
LAS VEGAS, NV / ACCESSWIRE / July 20, 2017 /
Efftec International, Inc. (OTC PINK: EFFI or the "Company"), a
holding company that focuses on sales of hardware, nutrients and
professional consulting services into the hydroponics and indoor
grow markets through various business segment activities, announced
today that it is restructuring its businesses to better align with
segment and managerial competencies. The Company's strategic
direction has now been organized along the lines of the following
three segments or verticals:
- Consumables: Red Light Bakers -- suppliers of
specialty baking mixes;
- Hard Goods: Xe Lighting and private label lighting --
suppliers of lighting products and nutrients to the indoor grow
markets and Budz Sunglasses -- manufacturer and
distributor of specialty grow room safety sunglasses; and
- Professional Consulting Services: Consulting Partnership
Group -- suppliers of turnkey solutions and consultation for
indoor agriculture.
The Company has developed and intends to further implement a
technology-based "incubator model" for each of these business
segments or verticals, along with possible future related
businesses or activities, with an intent at some future date to
either spin-off or sell each segment or vertical, either in whole
or in part. The Company believes that this "incubator model"
approach will maximize the Company's value by providing
shareholders with the ability to participate in the ownership of
any separate segment or vertical spinoffs.
In terms of reporting on the business and operational activities
of the Company over the past year in light of this restructuring
announcement, the Company provides the following status update.
The Company, after significant review by management and outside
legal counsel, has decided to divest itself of its ownership
position in Hemplife Industries and the Company is presently in
discussions to sell its ownership interest to a potential buyer.
The Company has also decided to sell the suite of five individual
industry-specific patents which focus on technologies and
methodologies that improve the efficiency of gas discharge lighting
systems, commonly known as HID and CFL lighting systems, that was
acquired in April 2016 since further development of these patents
are no longer relevant to the Company's planned future business
activities. The Company is continuing with its strategic
partnership with The Future Farms despite the fact that its planned
acquisition of that company has been further delayed due to various
reasons mostly attributable to the temporary absence of the
Company's chief executive officer last year due to illness and
various other issues attributable to unmet conditions specified in
the acquisition agreement. The Company is pleased to report,
however, that its chief executive officer has returned to that
position on a full-time basis. In addition, The Future Farms has
been able to utilize its established line of credit to purchase the
Company's products on a regular, recurring basis.
Lastly, the Company is currently pursuing a leasing option with
a medical marijuana grower in California which was initiated by the
Consulting Partnership Group whereby the leasing arrangement will
utilize the Company's proprietary container design and will be
funded as part of the Company's restructuring.
As previously reported, the Company and Chapman Aerospace are
continuing to review opportunities to deploy Chapman technology in
the hydroponics and indoor grow markets. The Company's proprietary
medium mix, developed and produced with its joint partner, Volcanic
Solutions, has been tested with full expectations of excellent
market acceptance. Although the Company has received an initial
order of three hundred (300) bags per month, the fulfillment and
logistics costs presently do not allow the Company to achieve its
minimum profit margin expectations. The Company is, therefore,
pursuing alternative ways in which the bagging can be performed in
South Florida, close to the Company's customer base, which would
allow the Company to meet these profit margin expectations.
The Company is in preliminary discussions with its largest debt
holder along with an unaffiliated third-party investor, which could
provide not only for certain financial flexibilities, but also
could include an infusion of new capital which the Company intends
to utilize among its business segments or verticals to further its
revenue growth and earnings potential as well as to pursue
additional opportunities.
Lastly, the Company has decided that it does not intend to
either increase its authorized common shares or to enact any share
splits or reverse share splits and, in consideration thereof, the
Company has retained SEC legal counsel and an independent certified
public accountant in order to commence the preparation of a Form
S-1 registration statement in order for the Company to be a fully
reporting issuer by the end of this year.
According to Brian Tucker, President of the Company, "The
restructuring actions along with the revised focus on the three
business activity segments or verticals will greatly increase the
Company's ability to achieve further growth as historically
evidenced by the increase of over 900% in net sales of $247,000 for
the calendar year ended December 31, 2016 compared to $27,000 for
the calendar year ended December 31, 2015."
Safe Harbor Provisions: This Press Release
may contain, among other things, certain forward-looking
statements, including, without limitation (i) statements with
respect to the Company's plans, objectives, expectations and
intentions, and (ii) other statements identified by words such as
"may", "could", "would", "should", "believes", "expects",
"anticipates", "estimates", "intends", "plans" or similar
expressions. These statements are based upon the current beliefs
and expectations of the Company's management.
For further information, please contact:
Mr. Jack Morris, Chief Executive Officer
Efftec International, Inc.
(888) 420-4213
SOURCE: Efftec International, Inc.