NEW YORK, February 6, 2020 — GenTech Holdings, Inc. (OTC PINK: GTEH) (“GenTech” or the “Company”), an emerging leader in the high-end CBD food and drinks marketplace, is pleased to announce an aggressive corporate structure initiative designed to demonstrate the Company’s absolute commitment to shareholder-friendly growth in 2020 and beyond as the Company readies the launch of its new Premium and CBD-Infused Coffee Subscription Package product. These steps include:
•An immediate filing with the State of Florida for a reduction in Authorized Shares by 25%,
•A plan to further reduce the authorized share allowance over a specified period,
•A scheduled program of debt retirement,
•Pre-emptive action on outstanding convertible notes expiring in 2021 and 2022 to prevent conversion and dilution in the market.
David Lovatt, CEO of GenTech, commented, “Our mission is to become the largest coffee subscription provider in the premium and CBD-infused niche in the US market. We have put in place a path toward that goal that is de-risked from the perspective of front-end investment. That allows us to begin proactively moving toward an aggressively non-dilutive framework and relationship with the capital markets, which holds the potential to add tremendous value for current and prospective shareholders.”
The Company plans to significantly reduce its authorized share allowance over time as debt is retired from the balance sheet and convertible notes are paid down ahead of conversion. Management notes that the majority of outstanding notes do not fall due until next year or later, but the Company wants to be proactive in removing that risk to send a strong message to the market that this represents a significant transition and commitment. Older outstanding obligations will be retired. Some portion of more recent obligations will be converted into a tranche of preferred equity and some will be paid off. In addition, the 25% reduction in authorized shares is expected to be completed and visible within six weeks.
The Company is nearing the launch of its highly anticipated premium and CBD-infused coffee subscription product offering, “Secret Javas”, which includes a Nespresso-compatible capsule version. Sales in food and beverages ecommerce in the US market is expected to reach $15bn by 2021, rising from just $9bn in 2016. Inside of that, Payments News reports that the approximate revenue from those who subscribe to products using the Amazon platform, rose from $2.9bn in 2014 to 11bn in 2018 with a significant proportion of these purchases in the grocery and gourmet food section. That’s a 260% increase over this period.
This data continues to suggest an overriding mainstreaming process in subscription sales for food and beverages is underway, further suggesting that the large market for subscription premium coffee offers a tremendous growth opportunity in the quarters and years ahead.
“We are riding a wave of extraordinary momentum on the operational side right now, and we have a number of extremely powerful catalysts set to roll out over coming weeks,” continued Lovatt. “But our first task is to reinforce to the market our total commitment to generating long-term shareholder value in a credible and robust way.”
About GenTech Holdings, Inc.
GenTech Holdings, Inc. is a publicly traded company under the symbol GTEH. The company is creating a national chain of Hemp Centric Coffee Shop Retail Spaces where patrons can relax, drink CBD infused Teas and Coffees, try various own-brand products and experience holistic education and classes. The company is also building an extensive outreach program working with medical practitioners across the country in their own locations to educate their patients and increase awareness of the benefits of THC free CBD Products. All of this is offered under the brand ‘The Healthy Leaf’.
This press release may contain forward-looking statements, including information about management’s view of GenTech, Inc.’s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words “believes,” “expects,” “intends,” “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of GenTech, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on GenTech’s future results. The forward-looking statements included in this press release are made only as of the date hereof. GenTech cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, GenTech undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by GenTech.
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