NEW YORK, February 10, 2020 — GenTech Holdings, Inc. (OTC PINK: GTEH) (“GenTech” or the “Company”), an emerging leader in the high-end CBD food and drinks marketplace, is excited announce the signing of a contractual deal (the “Agreement”) with a leading West Coast CBD Food and Beverage company (the “Contract Partner”) to handle storage, preparation, packaging, and shipping of all coffee products associated with the Company’s exciting new “Secret Javas” premium coffee subscription package.
“This contractual relationship will allow us to deal with rapid subscriber growth without having to scale up recklessly or inefficiently as the orders start to come in,” remarked David Lovatt, CEO of GenTech. “They have the capacity to handle that rapid growth. They also have the facilities to work with our premium coffees, which means we don’t have to compromise on quality or customer experience as the number of subscribers grows. The terms of this arrangement present our shareholders with tremendous value and no frontloaded balance sheet risk along the way.”
As part of the Agreement, GenTech will pay a minor monthly fee to the Contract Partner, who will also keep 8% of total sales and several pennies per package shipped. GenTech will keep the rest of the proceeds. GenTech will supply the coffee. The Contract Partner will provide storage, preparation, packaging, and shipping to accommodate all customer subscription orders.
According to Fuel by McKinsey, the overall subscription ecommerce market is worth $10 billion, not including Amazon Prime “subscribe and save” orders. But the Company believes there is enormous growth ahead in this space, particularly in the subscription coffee market. According to YouGov statistics, only 7% of US households currently subscribe to a food or beverage product. Globally, according to Statista data, the online foodstuff market is running at just 10% engagement in terms of consumers willing to buy food stuffs online. That represents enormous upside potential as delivery and subscription consumption activity moves increasingly mainstream over coming years.
“We know this is a huge and rapidly growing market, and we want to leverage that growth to drive shareholder value,” continued Lovatt. “But at the same, we don’t want to introduce new dilution or balance sheet risk to achieve that goal. This contract means we don’t have to invest heavily in the warehousing and setting up of a location to package and box and ship our monthly subscription orders. Given we are expecting there to be many thousands of subscribers, we didn’t want to scale up too quickly. This is an ideal arrangement to jumpstart growth in this segment.”
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.
Press & Media Inquiries:
EHC Branding Agency