NGH Issues
Shareholder Update Letter
2018 Accomplishments Expected
to Create Continued Growth and Market
Innovations.
MIAMI, FL.
-- August 1, 2018 -- InvestorsHub NewsWire -- Next Group
Holdings, Inc. (NGH) (OTCQB:
NXGH), ("NGH" or the "Company"), a FinTech service provider
delivering mobile banking, credit and telecommunications to the
underbanked and underserved population, announced today the
issuance of a shareholder update letter from its Executive Chairman
and Chief Executive Officer, Arik Maimon.
Dear NGH
partners and shareholders,
We wish to
start by thanking our partners and shareholders for all your
dedication and support. We strongly believe in our actions over the
past two years and more specifically, recently, in building a
strong and valuable company for the future.
These past two
years have been extremely eventful and successful. Our
restructuring and repositioning in 2016 & 2017
has
led to solid
growth in 2018, and has defined our innovation in both services and
market positioning, establishing a strong outlook for our success
towards the remainder of 2018 and beyond. To orchestrate the new
phase of growth and opportunity, NGH's Board of Directors has
unanimously voted to change the company's name to
Cuentas
Inc. due to the
upcoming launch by us of the "Cuentas" brand of products and
services. The name Cuentas and associated FinTech
product branding provide an invitation and connection to Spanish
speaking communities.
"Cuentas"
in Spanish
means "Accounts". The official company's
website is www.cuentas.com.
With
Cuentas
prepaid debit
cards it's easy to shop online, pay bills and make everyday
purchases. There is no upfront fee or credit check to order a card
online, and no minimum balance required. Your money is protected
against unauthorized transactions. You can manage your account
online and track your spending 24/7 with our mobile app.
The company is expecting to reach 1 million customers
during 2019 which would bring the total revenue for the group to
$200 Million dollars.
An application
has been submitted to FINRA to issue a new symbol along with a
reverse share split to allow NXGH to meet the requirement to up
list to NASDAQ.
We previously
announced record revenue for fiscal year (FY) 2017 reaching more
than $53.8 million, a more than 52-fold increase over revenue for
FY2016. The gross profit for FY2017 was $2.4 million, versus a gross
loss of $31,000 for FY 2016. The results for FY2017, which ended
December 31, 2017, were included in the company's most recent Form
10-K. The Company's 2018-Q1 Report on Form-10Q reported revenues of
$20.0 million compared to 2017-Q1 revenue of $0.5 million. Net
Income before non-controlling interest for the three months ended
March 31, 2018 was $1.5 million compared to a loss of $1.7 million
for the same period in 2017.
Management has
been focusing on improving the business units of the company and
positioning for growth in underserved markets, while minimizing and
retiring all convertible debt. The increase in revenue is mainly
attributable to several acquisitions consummated by NXGH. The
retirement of all convertible debt was a major stepping stone to
improve the financial health of the company and protect its future
value. The company currently has no convertible debt.
In March 2018,
NGH entered into a Letter of Intent (LOI) with Cima Group (Cima), a global digital solutions
provider and integrator, to acquire technology platforms
from Cima's subsidiary companies Auris
and Knetik, in exchange for a 25
percent equity stake in NGH based on a 50 Million Dollar valuation.
We believe we have developed a leaner, more effective leadership
and operational team with strong experiences in having successfully
built software services and connection platforms. This will result
in value creation for shareholders. We have streamlined our
operations and processes and have seen the net positive effects
throughout 2017.
NGH is
currently anticipating capital raises, aggregating approximately
$6-10 million based on NGH's valuation of 50 million dollars. This
will address specific long-term strategies that we are executing,
and, we believe, will establish NGH as a major player in this
space.
We expect to
be able to announce these initiatives over the next several weeks.
We believe these fundamental plans will lead to increased
long term
shareholder
value.
In addition,
the capital raise will increase our shareholders' equity and is
planned to result in meeting certain financial criteria for
the Company'sup
listing to
NASDAQ.
Arik
Maimon
Executive
Chairman
Chief
Executive Officer
Next Group
Holdings, Inc. (OTCQB:
NXGH)
About Next Group Holdings, Inc.
NGH is a
corporation headquartered in Miami, Florida, which, through its
operating subsidiaries, engages in the business of using
proprietary technology and certain licensed technology to provide
innovative mobile banking, mobility, and telecommunications
solutions, including wireless MVNO, to underserved, unbanked, and
emerging markets. For more information, visit www.nextgroupholdings.com.
Cautionary Note Regarding Forward-Looking Statements
Statements
contained herein that are not based upon current or historical fact
are forward-looking in nature and constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements reflect the
Company's expectations about its future operating results,
performance and opportunities that involve substantial risks and
uncertainties. The potential risks and uncertainties include, among
others, that the reverse stock split may not have the intended
benefits, that the Company may not meet applicable NASDAQ Capital
Market requirements necessary for listing and/or NASDAQ may not
approve the Company's listing application; and any capital
raises.These
statements are
based upon the current beliefs and expectations of the Company's
management and are subject to significant risks and uncertainties,
including those detailed in the Company's filings with the
Securities and Exchange Commission. Actual results, performance,
prospects, and opportunities to may differ materially from those
set forth in, or implied by, the forward-looking
statements.
For inquiries:
NGH Investor
Relations:
ThinkEquity,
a division of Fordham Financial Management Inc
email: info@think-equity.com
Ph:
(646)-968-9355